Thanks Terry, you really know your stuff. Since it’s a) then it begs the question in what scenario is it actually useful to get a valuation done (with regards to minimising CGT)?
If i reverse the example and move in for the first year (PPOR), then rent it out for 1 year and no longer treat it as my PPOR (say i buy a second place), would the…[Read more]
Hi all, question with regards to calculating CGT in a specific scenario:
I buy a property for 500k and rent it out for the first year. I then have it revalued at 520k before moving in myself and treat it as my main residence. After living there for one year i sell the property for 600k.
Is my taxable capital gain then (excluding 50% discount for…[Read more]
Hi all, might be more of a tax question than a finance question:
Can you invest the proceeds from the sale of a property directly into another property that needs to be refinanced without paying capital gains? I’m pretty sure its hopeless but is there any sort of workaround here?
Thanks in advance!
Interesting idea. The website looks good, interested to see the product.
I would say don’t forget to include all the official forms that go with self managing a property. E.g. for NSW check out the fair trading website, theres a form for the rental agreement, dilap report, bond money, permission to inspect etc etc etc. Same goes for…[Read more]
Got this great question the other day and it’s beyond my knowledge, does anyone here have some information which could help?
I’m currently looking at buying/building my first home, and have been thinking about either building a new home or buying an existing or even building a duplex on the Gold Coast, QLD. To live in one and lease the…
Hi Corey / Richard
That’s definitely good advice above, but if I wanted to learn more details where can I find further information on some of those things you mentioned?:
– A finance/loan structure that supports the next investment
– “The right lender”
– “Getting it right from the start”
Yep that’s along the lines of what I was thinking; move in for 3-6 months, electoral roll, phone, internet, electricity, gas, bank statements, mail etc etc.
Thanks for the article feedback as well – much appreciated!
Haha Benny, think we both posted at the same time there!
I have read that page before, and yeah it doesn’t specifically address the restarting of the time. I think my second post above is about as much info on the topic as is available on the internet, which is why I’m really trying to find if anyone has some real life experience with ATO…[Read more]
I have located the relevant section Terry mentioned s118-145 ITAA97
(2) If you use the part of the dwelling that was your main residence for the purpose of producing assessable income, the maximum period that you can treat it as your main residence under this section while you use it for that purpose is 6 years. You are…
Specific question with regards to CGT and the “6 year rule”
– I buy my first property and move in for 12 months. It is my PPOR.
– I rent out the property for 0-6 years. I buy no other property. It is still my PPOR.
– I move back into the property for an “acceptable period of time”
– I rent out my property…[Read more]
My understanding is that the 6 years are cumulative between multiple properties, so if you’ve had the other IP for more than 1 year then CGT would start to be accumulated. BUT it would only be for the proportion of time that it exceeds the 6 years, so this when combined with your 50% discount should be a relatively small amount.
Have you spoken…[Read more]
The original definitely works however the post seems to focus on cheap regional properties… personally I don’t have the time to spend researching a regional area thoroughly as described.
I did just skim through the comments, but the only other strategy I saw mentioned was renovating to possibly manufacture positive cash flow.
Has anyone…[Read more]