More Wealth from Residential Property

LVR - Loan to Value Ratio

ratio of the load to the value of the security used for the loan e.g. the property. If >80% mortgage insurance will be required by the lender to insure themselves (not you). The security need not just be the property being bought with the loan.

DSR - Debt to Service Ratio

Amount of the loan repayments divided by eligible income
typically Loan payments for house plus other loans such as personal loans and credit cards divided by
30% wages + 80% rental income

Capital Gain

Selling price
- value of fixtures & fittings (depreciated value)
- Cost base
     purchase price
  + purchase costs
  + Selling costs
  + Building improvements
  + Other costs
  - building depreciation (the 2.5% of the original building costs (not the land) that you have been claiming on your tax each year)
You take 50% of this gain and add it to income for the year so it is taxed on your marginal rate for that year. So do this when you are retired and earning nothing any more.