Thanks TheNewGuy, I don’t really know much about all of that at this stage, but definitely something I’ll educate myself further on.

That’s pretty much my predicament, I’m unsure what will be best. I want to eventually relocate to Melbourne for family reasons, but in the mean time, if I was to rent the property out and rent a property locally for myself, it would cost me more to rent than just staying in the property on my current IO loan repayments. I know it isn’t really…[Read more]

Thanks for that Benny. I’ll definitely be seeking some further advice on this once I know what course of action I’ll be taking.

It was a transfer under a family law settlement. That sounds like it would be easier to deal with, just more CGT though. Sounds like it might just be easier to get rid of it while it is still my PPOR.

Terryw, that has got me thinking. If I was to rent it out and then sell it, would I pay CGT on the original purchase price, or the price used for the seperation settlement?

I’m assuming the original purchase price, as that would make it in line with the interest deductibility you made me aware of, but just thought I’d clarify.

Thanks for that Terryw. What kind of professional would I need to seek the services of to get the loan split into the relevant portions – accountant, lawyer?

So, when I refinanced to buy my ex-partner out would that be considered a loan to purchase the property, or redrawing equity? At the time it, it was valued by th bank $65,000 more than I originally paid for it. Just considering there was a change of title from both of our names to just my name.

So, when I refinanced to buy my ex-partner out would that be considered a loan to purchase the property, or redrawing equity? At the time it, it was valued by th bank $65,000 more than I originally paid for it.

Thanks for the advice Benny. That has been one thing worrying me. At the moment the variable rate is the same as it was when I went fixed, so it will be just over $1000 to break the contract. I guess other than speculation, I won’t really know until settlement if I did choose to sell. Another reason I think it might be best to hang on to the place for now.

Thanks for the constructive responses guys, I really appreciate it. My $1065+ cash flow was based on some assumptions, and after getting some quotes and rental valuations done, I’d actually be needing to contribute around $45pw if I was to rent it out. So I actually see it as no benefit moving out and renting it out now, as I’ll only be reducing…[Read more]