Which of the following statements about 'Property Taxes' (in NSW) and 'Property Strategies' according to the material covered in the

lecture are TRUE:

1. An individual buys an investment property for $1 million that consists of a house built on 550 square meters of land. Land tax is

normally payable on the difference between the market value of the property ($1 million in this case) less the relevant land tax free

threshold.

2. Lenders Mortgage Insurance is a fee payable if you borrow more than 80% of the value of a property. The insurance will pay your loan

payments on your behalf if you temporarily lose your job or have an accident or illness that prevents you from working.

C

Neither of the statements are true (both are false)

Only statement 1 is true

Only statement 2 is true

Both statements are true (neither are false)