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Thanks Mick! I have since been on the phone to the ATO and yes they explained the 50% discount for owning the place longer than a year.
They also said that if it has been rented out longer than the 6 year exempt period, I'm still eligible for a partial exemption, meaning that when I sell I will pay CGT only on the proportion of profit that amount of time between the 6 year period ending and moving into it represents. Ie. if that month works out to be 1% of the time that I owned the property overall then 1% of the profit is subject to CGT — 0.5% when you apply the discount mentioned.
And that's fair enough!
Thank you both – I have actually consulted the same mortgage broker who set up the finance for my first property and he's told me I can't do this since I don't have 3 months savings history as I only recently returned from some travelling and have just started working again two weeks ago. I just don't want to take no for an answer as I believe this deal is perfectly affordable under the circumstances — would having a guarantor help allay any concerns though?
Thanks to you all for the good advice, I appreciate it. Will try to temper my enthusiasm for this particular property and if I can't go ahead with a great deal on the finance as well – c'est la vie I guess!
x Sheran
A deck is always good if you can build one! Renters like them…
