First home/investment property

Viewing 5 posts - 1 through 5 (of 5 total)

CStar
Participant
@cstar
Join Date: 2002
Post Count: 1
May 6, 2003 - 10:54 am
Hi just looking for some pointers regarding the following;
I intend I buying my first home in the next month. I am eligible for nsw 1st home buyers grant + first home plus stamp duty reduction. I have to live in the home for first year to get these bonuses.
The questions is can I still claim tax benefits in the first year if I intend on letting out 4 rooms to students. [](I will be living there also)
Would it be useful for me to use a quantity surveyor or is this only if it is bought as an IP to begin with?[?]
[]Anyone with similar experience or knowlege, I would love to hear from you.
Cheers
Cstar
trueblue
Member
@trueblue
Join Date: 2003
Post Count: 142
May 7, 2003 - 3:47 am
I do not think it is a good idea to try claim for tax deductions if you are renting out your rooms. While you may appear to have a short term gain, you’ll lose out on 100% CGT exemption on your house.
walkernick
Participant
@walkernick
Join Date: 2002
Post Count: 68
May 7, 2003 - 1:57 pm
Hi CStar,
I may be wrong, but do the FHBG rules really state that you must live in the property for a year??
I have been ‘advised’ by my accountant that if I want the FHBG for my first property (which is an investment) then all I need to do is go live in it for a weekend, change my address with the RTA and then if the ATO or anyone asks, I got sick of living by myself and went back home for the great home cooked meals – but they let you keep the $7000.
I’m not sure whether this is the most ethical thing to do, but from what I understand, if I go to buy my own Principle Place of Residence, and the FHBG is still around, I no longer am eligable for the grant if I have owned property (investment or otherwise) – and this to me seems very discrimantory against young people who take the initiative to buy an investment first!!
Any accountants out there might want to tell me if I’m completely wrong here!
Cheers
-Nick Walker
wilsonkay
Member
@wilsonkay
Join Date: 2002
Post Count: 52
May 7, 2003 - 10:51 pm
Hi Nick,
Yep, based on the advice I have also recieved you are right on the money, however I would urge caution. Is this something from an ethical standpoint you really want to be known as doing? You’re integrity is worth a lot more than $7000 – believe me!
Regards,
Tim Wilson.
“Poverty is not an option”
CStar
Participant
@cstar
Join Date: 2002
Post Count: 1
May 28, 2003 - 8:28 am
Thankyou for the interest. That helps quite a bit.
Smile