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Hi I really need someone to explain to me if this is doable
I already have a PPOR, due to work commitment and long hours I decided to buy and apartment off the plan $745k Port Melbourne (in 2018) closer to work (in CBD) so that I didn’t have to commute back home late. To date I still work long hours.
I will be living in that apartment some nights during the week and consider this to be another place of residence even though I might be there 3nights a week.
I am buying the place as a PPOR and will still be paying stamp duty
Property is due for settlement Feb2020.
I wanted to know how land tax will be applied, because you can only have one PPOR. The SRO (Vic) will probably say you cant have 2 PPOR and then I will probably need to pick one. What do I do in this case? pick the apartment or pick my PPOR.My PPOR is worth about $1m, the aprtment worth $745 not sure what the land component is worth.
What to do?
Appreciate your thoughts/advice/tips on that his topic.
Cheers
First thing to do is to look at the land tax act and the definition of principal residence and see if you have a choice. You probably don’t. It will be a question of fact, not the ability to select. See if there is a definition – which will probably be the one which is the ‘main’ place with all of your belongings.
If there is a choice possible, you would want to choose the one with the highest land value, so you should find out what the land value of each is worth.
Don’t forget to consider the CGT aspects too.
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
