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Dear Chook77
Cattleya is correct – to clarify – 1) to obtain the discount you don't need to ever live in the property – just hold the property for a minimum of 12 months from purchase contract date to sale contract date, i.e. not settlement dates.
2) "Also we have heard that if you sell it after owning it for 6yrs, it also helps with CGT." – This is the case if the property has been your principal residence, i.e. you have to have used it as your principal residence at some stage of the ownership of the property, e.g. if you actually live in the property as your principal residence from the first date of possession then leave it and rent it for up to 6 years the property will be free of CGT when you sell it., but you can only have one principal residence (for CGT purposes) at a time. If you hold the property for more than 6 years after having occupied it as your principal residence, the exemption from capital gains tax applies to the full period of ownership to the end of the 6 year period, but not to the period after the 6 year period.
I hope this helps.
Craig
