Wayne. Yes it starts when you move out and then if you move back in and move out again it restarts! But you can only have one PPOR at one time. So if you are renting now while renting out you other house which was your PPOR, then you may want to consider moving back for a short time in before 6 years is up.

Have a look at Tax Determination 95/5.

Terryw
Discover Home Loans
North Sydney
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You can keep your family home and rent it out and still claim it as your main home for a period of 6 years. If you sell within 6 years, it will be tax free (you can only claim one home as your main residence). So if you rent it will be good, you can claim all your expenses etc but if you are buying a new home this won’t work.

Refinancing or just increasing your loan would be good to get some more money for investments.

if you sell the home, you would have costs such as agents fees on the sale and then costs again when you purchase a new investment – stamp duty etc.

Terryw
Discover Home Loans
North Sydney
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It would be very hard to get finance for. The bank could not lend on the lend as this would be owned by the caravan park and leased.

You may get some finance on the strucuture, but i beleive it would generally be treated like a personal loan.

Terryw
Discover Home Loans
North Sydney
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I agree that it is generally best to avoid, but if you do have to cross, then you can uncross after some growth without too much fuss.

Also, banks will and do foreclose! They aren’t in the business of selling real estate, but they will do this if you stop paying. It will be up to you to find an alternative lender who could refinance you.

Terryw
Discover Home Loans
North Sydney
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Take them to the administrative appeals tribunal, you could get awarded that they owe you money, you then put it in the hands of a debt collector – for a small percentage they will chase them and collect for you.

Terryw
Discover Home Loans
North Sydney
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Hi

It shouldn’t make too much difference wiht lenders. They do not treat singles any different.

A lot of people are married and one of them stays at home not working. This hurts serviceability as the lving expenses are hgih for two people.

I have a lot of clients who are single, and still living at home with parents and are doing well – ie not paying rent helps a lot!

Terryw
Discover Home Loans
North Sydney
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I was of the understanding, that if you lived in your house and then rented it out, you could still claim it as your main house for up to 6 years and hence pay not CGT if you sell within this time.

But if you are renting out a portion of your house while living there, then when sold that portion will be subject to CGT – ie you cannot claim the 6 year rule on that portion.

But I may be wrong (again!).

Terryw
Discover Home Loans
North Sydney
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Freedomfinder

The figures you quote are the maximum exposure levels per client for LOW DOC loans.

That is why I think people should consider purchasing in one name only, especially for low docs. With low docs, a husband and wife buying separately could have up to about $3mil in loans, but jointly only up to about $1.5mil.

Terryw
Discover Home Loans
North Sydney
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XXX

If you lived in the house as your main residence, then there would be no requirement to live in it for one year. You could sell after a few months and still pay no CGT. BUT if the ATO suspect you are doing it as a business, then they could still impose CGT.

Terryw
Discover Home Loans
North Sydney
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Yes, it may be hard to use as security when it is not finished. It is also not worth what you quote at the moment as it is still being constructed, so maybe it would be better to wait.

But, as Simon said, don’t beleive anything a bank manager says without verifying. When I started out, I went for a loan and was rejected because I was part time, so I just left it at that. But if I had asked around, I could have gotten a loan and could have purchased that property – which would have grown in value 4 x.

Terryw
Discover Home Loans
North Sydney
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