Hey Guy's and Girls
I have recently landed a job with a salary over $100,000 and find myself looking to end the renting life and purchase my first home/investment. I work away for 2 weeks at a time and come home for 1 week R and R. Anyway I had a brilliant idea? to make the property I purchase a holiday house/apartment etc so I can rent it out while I am away. Has anyone got any usefull insight on this? Can I still claim the first home buyers grant? Is it a business of sorts if I do this? Are there any places dealing with holiday houses etc. I am really "green" to all of this. Thinking of spending around $450,000 if it makes any real difference. Any help would be very much appreciated. Hopefully it is a workable idea
Thanks Dazz
Hi Dazz,
Using it as a holiday home and you living in it is possible but would get a little complex in a few areas. One is GCT, unsure if you can apply the 6 year rule or not. You would have to split everything 2/3 for tax etc and then because of your high income any money you do earn would be hit at your tax return rate, which is high.
You could look at purchasing in a trust with a company as trustee and you pay your trustee rent, that could work but would like to think about that a little more. You would still be paying a high tax rate though.
How much money per year do you think you would be making while u are at work? Depending on the info you might be better renting and having a holiday home which can be rented out full time, more maney, less tax etc
Glen
Hey Glen
Thanks for thoughts. All of the tax stuff sounds a little tricky. I have found a popular unit and am going to check it out. Sounds like it would be worthwhile getting an accountant to run through all of the tax implications with me?
Dazz
I am at cross roads of what to invest in next…??? Thanks to my husband that lets me make alll decisions also all the risks..???
Have been to investors club, spend hours on internet…
Is it better to buy new off plan unit or perhaps an older house with option to sub divide and build..???
How do other investors make the decision???
Any help very much appreciated…I agree with Glen, I am not sure of all the tax implications and FHBG and CGT and how all that would work having a holiday place for 2 weeks and then living for one. But I can imagine it just getting difficult logistically. I think the best bet would be just get a 2 (or more) bedroom place and rent out the spare room, maybe you could convince the tennant to pay a little more seeing as they get more space to themselves 2/3rds of the time, either that or at least they are looking after things and hopefully keeping everything tidy. Alot more stable and simple then a holiday place and renting it out to different people for 2 weeks every 3 weeks.
Definitely talk to an accountant to guide you through everything, as you are self proclaimed, new to all of this stuff.
Good luck with whatever you decide anyway.
I used to rent out part of my place to someone who's work routine was exactly the same, 2 weeks on 1 week off, he worked on an oil rig.
Hardly ever saw him, great to share with.
You should be an ideal owner housemate, hardly ever there.
Adjust the utility consumption costs pro-rata, set house rules, buy the right place to attract the right tenant, but make sure your accountant thinks this is the best way to go. Could be a win-win.
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Interesting – the 6 year CGT rule applies for absences for up to 6 years. You could be absent every 3 weeks, move in and have it as your main residence again, move out and in etc. It could apply maybe??? but a lot of hassle.
What about just buying a place and taking in a permanent flat mate? CGT may apply to half the property, but you may avoid this by only charging a small fee for 'board'.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
dazza82 wrote:Hey Guy's and GirlsI have recently landed a job with a salary over $100,000 and find myself looking to end the renting life and purchase my first home/investment. I work away for 2 weeks at a time and come home for 1 week R and R. Anyway I had a brilliant idea? to make the property I purchase a holiday house/apartment etc so I can rent it out while I am away. Has anyone got any usefull insight on this? Can I still claim the first home buyers grant? Is it a business of sorts if I do this? Are there any places dealing with holiday houses etc. I am really "green" to all of this. Thinking of spending around $450,000 if it makes any real difference. Any help would be very much appreciated. Hopefully it is a workable idea
Thanks Dazz
This is really a very brilliant idea.
There are lots of places that deals with holiday houses..
anyways, which place do you want to invest?
Hi Alyna
I live on the beautifull southern Gold Coast and was thinking of getting an apartment/ unit in Kirra, Coolangatta, or Currumbin. I have lost some motivation on the idea at present. If its going to be hassles with Tax and CGT and god knows what else then id rather leave it. Who would be best to run me through the pro's and cons of this idea to help make my mind up?
An accountant, its their bread and butter.
From the sound of it you are working in mining or the like. If so I would highly advise seeing an accountant even just for the job aspect, the PPOR/Investment can just be a bonus (ask while he gives you tax advice on what you can claim for the job, so you know what reciepts and documentation to keep)..
As you are in an industry where it is more likely that you can claim considerable deductions it may be good to get an accountant who regularly does tax for people in your industry, maybe get recommendations from colleagues.
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