Mortgage PPOR/Investment Help

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

troycorp
Member
@troycorp
Join Date: 2003
Post Count: 12
October 8, 2003 - 4:20 am
I was just having a chat to a friend who is looking at buying his first Property. He is under the impression that if he finance’s it as his PPOR and then decides to rent it out as an investment property that he can not claim the relevant deductions i.e. interest, depreciation etc.[] He seems to think that if it is purchased as a PPOR that it stays that way for life and can not be classed as an investment. Can anyone tell me if this is true. [?]
my65roses2
Member
@my65roses2
Join Date: 2003
Post Count: 5
October 8, 2003 - 4:29 am
Hi Troy,
No that is not true. I have known many people who have purchased a house and lived in it for 6-12 months and then rented it out. Once it becomes rented it becomes an IP. Your PPOR is exactly that, the primary place you reside.
Hope this helps []
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
October 10, 2003 - 8:50 am
The last post is spot on.
At any time the property produces income then the cost of incurring that income is deductible.
All the best,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
George1
Member
@george1
Join Date: 2003
Post Count: 59
October 10, 2003 - 9:18 am
Once it is rented it becomes PPOR is considered an investment by the ATO and the relevant deductions can be made.
Billfromoz
Participant
@billfromoz
Join Date: 2003
Post Count: 381
October 10, 2003 - 8:44 pm
G’day…
It really gets back to your “initial intention”
So if your friend was to live in the property even for a short time …and I don’t mean just a month or two. Realistically, he would be doing himself a favour if he lived in the property for a year and then tenanted it…he can change his mind in the 12 months and then rent it out….with complete “investment staus”.
I have known of some that tried to shaft the system by “making out” they are living there.even their mail going to the address…only to find a disgruntled tenant “dobbing him in to the ATO:…tell your friend to play it straight and don’t try to be clever…however tempting.
Billfromoz