I didn’t say you would not be subject to CGT on your place. You need to make a decision on whether to claim the main residence exemption on this property or the other.

No valuation needed for new property as any CGT will be worked out on apportionment.

1. No
2. Possibly. But spouses property will be subject to cgt.

I am a lawyer and have seen a few people lose everything they put in to projects of developers – biggest loss that I saw was $1mil.

But clients only come to see you when they lose, there are probably many more that succeed. Just be careful and get legal advice before doing anything.

If you invest $300k with a developer you will be very lucky to get it back!

That is generally how to do it.
You would want to try to structure it so that you get as much of the debt on owner occupied rates to save interest. Depending on your current set up it might be better to secure 80% on the home and 25% on the IP!

Where is the land?

I am using a town planner now who are located about 5km away from me – yet I have never met them and don’t plan to.

Yngv18 wrote:

Adding spouse name to title for PPOR will trigger CGT? Was the regulation changed recently?

No change in laws recently.
Transfer is a disposal which is a CGT trigger. If the main residence was a CGT exempt asset there would be no CGT. But this property was an investment property before becoming a main residence.

Arvind wrote:

Hi Stuart,
1) Talk to lenders and inform them that the townhouse will become your investment property hence the max loan amount should be on that.
2) Once you purchase the house, contact certified property valuer and get the townhouse valued as this will be your purchase price, & will help you calculate CGT if you decide to sell the unit in future.
3) Get depression sechedule made so that you can reduce tax.

Hi Arvid

1. why?
2. this will be the cost base, but it could still be CGT exempt.
3. Depreciation of fixtures and fittings won’t be available because the house is not new. Only building works could be claimed.

Transfer of title will result in a CGT event being triggered.
Even if there is no consideration it will be assumed you sold to wife at market value.
Because it was an investment it is probably that tax will be payable.

But seek specific advice

The interest rate will depend on how you do it. You could get owner occupied rates if you are careful.
But make sure you split the loan before you deposit the money.

And don’t forget option 3
Keep the cash where it is and just borrow against the main residence for a further loan.