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So my understanding is right Wilco1??
Will depend on which and when selling and what property. Things change again once in retirement as can tip some into Super.
Thanks members
YesDuckster,
I did buy another at about 18 months into the rental, bought a Rural Primary Production Block close to a city, I still hold this and all going well, will subdivide to rural residential blocks at a future date.
Our plan has been to buy PPRs that have good CG potential or development potential and build up a portfolio.
It will give our accountant some work but I am just trying to get a good understanding in preparation for future sale of some property.
So if P1 PPR purchase is point 0 lived in for 1.5 Y + 6 years is claimed on property 1 than that is year 7.5
Property 2 then does not become available for CGT exemption until Y7.5
Property 3 purchased at Y 8.5 could forgo (?? ) 6 year CGT exemption on P2 and apply to P3 and so on.
or option not to apply 6 year on P1 and apply to P2 or what ever most financially advantageous ??
That is why I called the post complicated CGT as I thought it would develop !
Sorry Halfback but I have to agree. but if its IP and the ( real on ground ) figures stack up it might still be a reasonable option. Keep in mind the market price for the suburb and use the lower end figures for safety.
In Toowoomba the most popular area is the Escarpment and the South Eastern Quadrant
Have a look around on Google Earth and you will see there are plenty of old houses on big blocks in good areas that have plenty of potential
Thanks Wilco1
I have a better grip of its application now
Thanks Terry
Given that being the case it may be better to allow them to stay for free although the reduction in return due to CGT would diminish by proportion over time.
2/26 when first exempt at 2 years as PPR 2/62of CGT at 5 Years PPR I expect?
Yes Thanks Dave
Also 2/12 depreciation of fitting / furnishings which are at a different depreciation rate than the prime asset so will have to value them and split from overall capitalised cost as well. How would repairs to the property undertaken during the lease be treated?
Read this topic it explains most of your questions
https://www.propertyinvesting.com/forums/general-property/4347101
A single tenancy dwelling can only have one Tennant or Tenants in common not exceeding 5 unrelated persons
to change property use including new construction requires more investigation design to meet planning requirements and approvals.
Of course the garage is part of the same dwelling!!! and would be another tenant so no go!
Hi Robert
With respect to title ownership / trusts, the main object of the exercise is to containerise the investments so that one adverse event does not jepodise your entire portfolio.
Simply speaking, The trustee of the trust is a PTY Company so has limited liability. You as the owner on the other hand, are liable to the full extent and can loose all assets.
Companies can borrow against assets etc but I have seen company directors loose everything including their PPR due to having signed directors guarantees or putting up the PPR as collateral.
Always keep in mind that we are in rising property prices for a sustained period and high price of housing that is almost unmatched around the world, always consider your strategy in a price recession, Finance providers are in no way benevolent and will extract their pound of flesh.
Good planning and strategies for all scenarios ensure future prosperity.
Good Planning beats Good Luck every time.
Ozman
