All Topics / Help Needed! / questions on changing over from living in your place to renting it out

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  • Profile photo of misunderstoodmisunderstood
    Join Date: 2008
    Post Count: 1

    hi all, just stumbled across this site and forum, and find it all very helpful.
    My situation at the moment is renting a place in Darwin with a flatmate, who is leaving in a couple of months.. I'm going to stay in Darwin at least another 8 months so thought it might be worth buying a place, rather than paying rent by myself.
    I'm looking at 2bed  apartments selling around 300K, and think i should be able to afford repayments no problem (i'm making around 70-75K) and have about 18K deposit atm.
    The question i'm getting at here, if i buy a place and live in it for 6 months, so i can recieve first home owners grant, and stamp duty concessions (from what i've read, first home buyers pay no stamp duty on properties upto 350K here in NT?), are there any implications in then changing it over and making it an investment property when i leave darwin? I havent spoken to anyone who has done the same thing, so i was just wondering if there is anything that i'm missing, because it seems that it will be a good idea to me, but i'm definately new to this game!
    thanks, pete

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    hi Mis

    That is a good idea as by living in it first you may qualify to keep it as your main residence even while renting it out and thus avoid CGT for up to 6 years and be able to claim negative gearing.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide)

    Profile photo of voyagervoyager
    Join Date: 2007
    Post Count: 18

    I am about to do the same thing (move out of my first home after 6 months and rent it out).

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