HI ALL
our situation is as follows have just renovated our ppor to acually sell but have changed our minds and think its a better option to make it an ip
numbers purchace 175k
loan 171k 7.1% io
rent app 250pw
val 350+k
what are our options now ?do we have the house valued by valuers or can we have REs give appraisals would this be valid to the ATO also are there any other tax benifits avail
cheers gazza[confused2]Hi Gazza,
how much do you owe to the bank on your property. This way, we can assess the % return if you were to make it an investment property.
Kind Regards,
George.“If You never never ask, you’ll never never know”
Hi Gazaa,
I am not an accountant so certainly take what I have to say with a grain of salt – hopefully some pointers I can give will provide some discussion starters with your accountant.
I am assuming you are buying a new PPOR and as such your CGT clock will start ticking soon after you move into your new home. If you are not buying a new PPOR then the clock can be delayed for up to six years under most circumstances.
If you were to sell (which would seem a waste of an asset with a debt ratio of 49%) your capital gain at time of sale would be apportioned over the length of time you owned the property.
Other deductions available to you are depreciation, but have a chat to a quantity surveyor first as they will tell you whether or not it is worth getting a depreciation report done.
You could also have the house revalued by a valuer so you could establish equity levels to further your investment portfolio should you want to pursue this path.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
hey geo
loan 171k 7.1%io
cheers bring the thoughts onhey derek
thanks for the info we did know of the 6 yr rule but did no think to use it this way thanks for your thoughts and any more that might come along[biggrin]we are on the lookout for a good property accountant at the mo[upsidedown][tired]
in the bris north area
cheers gazzahi all
another thought all the renos we have done could they be claimed now or will this come off the calculations for cap gains if we sell
cheers gazzaa[confused2]Originally posted by gazzaa:do we have the house valued by valuers or can we have REs give appraisals would this be valid to the ATO also are there any other tax benifits avail
cheers gazza[confused2]Gazza..
Pardon my ignorance, but, Why does the valuation have to be valid to the ATO ???
I’d do as Derek suggests also and if using as an IP get depreciation schedule done by QS.
Great Equity achieved in your property now..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorThe ATO doesn’t recognise valuations done by REAs.
You need to use a registered valuer.
Cheers,
Aceyducey
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