Unintentional investor

Hello,

I have some questions as I find myself in a position where my house will be rented for two years from July.

I purchased a house in Canberra approx September 2007 for the purpose of living in.  In July of this year I will be going overseas for two years and intend on renting the house out for that period.  Upon return, I will live in the house again until the final move into a pine box!

What I would like to know is;

1. Is it treated like any other investment property even though it is only for two years?
2. If I update the bathrooms a small amount before I go, is that a claimable item for tax purposes? (I also want to install ducted gas)
3. Should I even bother to update the bathrooms at all? ( I want to get them done eventually, but thought it might generate a bit more rent for now)
4. Will the two years as an investment property create any issues in the future?

Any other ideas/suggestions would be great.

Thanks
Jester

TheJester

I beleive you can claim all expenses just as you would with any investment property.
Updating a bathroom before it is rented probably wil not entitle you to claim anything while it is not rented. But, depending on what your do, you may be able to claim more depreciation.
3. it may be better to wait for the bathroom. Why give the tenants a new bathroom that you cannot enjoy. Wait till you get back and have a nice new bathroom for yourself.
You can still claim this house as your main resident while absent and avoid CGT completely if you move back in within 6 years. Check with your accountant before doing anything, just in case.

Terryw
Discover Home Loans
Terry@discoverhomeloans.com.au
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