澳洲Australia property Can I have a tenant but not an IP? | Sydn


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hypothetical musing....

Hubby and I are looking at a tree change to Tassie in the next 3 - 5 years.
Have to wait for some business matters to sort themselves out so can't see us moving any earlier than that

We try to get down there very 6 months for a week or two

We are looking at acreage within 1 hour of Hobart. (lots available)

Can we buy something now-ish, put tenants in it but not claim anything as an IP? Ie not claim any of the interest etc. I know it is a pain to buy an IP with view to live in it as a PPOR.
Just to make it more interesting... We want to keep our current PPOR (a 1br resort unit on the sunny coast) to come back to when we are old and doddery and don't want the acreage :)

What is the best way to approach this?  

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moyjos said: ↑
I know it is a pain to buy an IP with view to live in it as a PPOR.Click to expand...
Why? :confused:

The Y-man  

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I thought was all sorts of "intention of the loan" problems.

The intention of any borrowing will be for both properties to be PPOR's at different times in our lives.  

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if you are receiving income - I would have thought you would have to declare it.  

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Hiya

Its an IP

until you move into it, or remove the tennants to make it a holiday home, its an IP

ta
rolf  

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Me too.

If you are renting out a property for part of the year, I think you have to declare income received, and (if you want) expenses paid  

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Hmmm think it might be a serious chat with the accountant.

I will have to get him to work out of it is worth claiming the rent income as income and just paying tax on it vs paying CGT for the planned 10 years of living there. The cap gain doesn't bother me so much for the proposed Tassie property (does gas have any capital gain. Lol). It is more the capital gain that I would expect for the sunny coast unit.  

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If you receive rent then it is income. You don't get a choice on whether you declare it or not - or you actually do, but if you don't declare income you would be breaching a few laws.

If the property remains untenanted that is a different matter though.  

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I am happy to declare the income. (and pay income tax on it)

By not claiming expenses, does that negate CGT?.  

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moyjos said: ↑
I am happy to declare the income. (and pay income tax on it)

By not claiming expenses, does that negate CGT?.Click to expand...
No. It is only by not earning income that you may be able to avoid CGT  

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If you are concerned about not paying CGT on the sunny coast unit but not concerned about paying it on the Tassie house, can you not buy the Tassie place, rent it out, and then use the six year rule? Keep the sunny coast unit as your PPOR and when you move to Tassie, make sure you come back in six years, just for a few months, and then go back to Tassie?

I mean, can you keep the sunny coast unit as your PPOR the whole time?  

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wylie said: ↑
If you are concerned about not paying CGT on the sunny coast unit but not concerned about paying it on the Tassie house, can you not buy the Tassie place, rent it out, and then use the six year rule? Keep the sunny coast unit as your PPOR and when you move to Tassie, make sure you come back in six years, just for a few months, and then go back to Tassie?

I mean, can you keep the sunny coast unit as your PPOR the whole time?Click to expand...
Hmmm interesting concept Wylie... How often can we do that? I wonder if we can move back to the coast for 6 months every 5 years.? And thus not pay CGT in either place.

Can you actually have TWO PPOR's for an extended time?  

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moyjos said: ↑
Hmmm interesting concept Wylie... How often can we do that? I wonder if we can move back to the coast for 6 months every 5 years.? And thus not pay CGT in either place.

Can you actually have TWO PPOR's for an extended time?Click to expand...
My understanding (from reading about it here on SS) is that you cannot have two PPORs but only one and that you can move out for up to six years, move back in for a while (how long?) and then move out for up to another six years.

People also say you don't have to decide which is your PPOR until time to sell?  

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wylie said: ↑
My understanding (from reading about it here on SS) is that you cannot have two PPORs but only one and that you can move out for up to six years, move back in for a while (how long?) and then move out for up to another six years.

People also say you don't have to decide which is your PPOR until time to sell?Click to expand...
:) thanks Wylie love this concept :). Will be definitely be taking this up with Tim the wonder accountant :)

Seeing him on the 19th of July so wanted to be well armed :). Won't tell hubby that it might be possible to buy something sooner than later :)  

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You can only claim one property as your PPOR at any given time. The 6 year rule can't be applied over 2 properties in this manner (live 5 years in one, then 5 years in the other, change a few times, then expect to get the CGT exemption on both if you sell either).

I am wondering however, how far back do the tax records go for individuals? If you lived in one, then moved into another property, then moved back and sold the first under the 6 year rule, that's fine. Would you then be able to live in the second property for another 10 years and claim the CGT exemption for the second property for the full 16 years you 'lived' there?  

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Ok so I guess I will have to pay CGT on at least one of the properties.

Do I get valuations every couple of years to PROVE any gain? I would imagine it would be prudent to get a valuation when we move out of the sunny coast unit given that we will have lived here for just over 10 years buy the time we move. Even though vals are flat now, we have certainly seen a decent rise since we bought. I would hope CGT is calculated from the time it becomes an IP and not from the time we bought.  

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moyjos said: ↑
Ok so I guess I will have to pay CGT on at least one of the properties.

Do I get valuations every couple of years to PROVE any gain? I would imagine it would be prudent to get a valuation when we move out of the sunny coast unit given that we will have lived here for just over 10 years buy the time we move. Even though vals are flat now, we have certainly seen a decent rise since we bought. I would hope CGT is calculated from the time it becomes an IP and not from the time we bought.Click to expand...
If you will be claiming the property as your main residence while being absent then you wouldn't need a valuation. But, if it is going from a main residence to an IP then you would need a valuation as of the date you rented it.  

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wylie said: ↑
My understanding (from reading about it here on SS) is that you cannot have two PPORs but only one and that you can move out for up to six years, move back in for a while (how long?) and then move out for up to another six years.

People also say you don't have to decide which is your PPOR until time to sell?Click to expand...
So, is this a workable strategy...

1. Current PPOR : Sunny coast
2. Move out, get valuation. insert tenants
3. Purchase Tas and move in before tenants to "establish PPOR"
4. stay from 6 months to 5.5 years
5. Move out, get valuation. insert tenants
6. Move into sunny coast for 6 months to 5.5 years
7. repeat steps 2-6 as much as you like (although valuations no longer necessary,right? - oh, and no "purchase" at step 3, obviously)
8. Decide to sell either place, claim it as PPOR for tax purposes to avoid CGT, stay in other place permanently.
or 9. Decide to sell both, get valuations, calculate which will cost least CGT, claim the other as PPOR.  

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Jake D said: ↑
So, is this a workable strategy...

1. Current PPOR : Sunny coast
2. Move out, get valuation. insert tenants
3. Purchase Tas and move in before tenants to "establish PPOR"
4. stay from 6 months to 5.5 years
5. Move out, get valuation. insert tenants
6. Move into sunny coast for 6 months to 5.5 years
7. repeat steps 2-6 as much as you like (although valuations no longer necessary,right? - oh, and no "purchase" at step 3, obviously)
8. Decide to sell either place, claim it as PPOR for tax purposes to avoid CGT, stay in other place permanently.
or 9. Decide to sell both, get valuations, calculate which will cost least CGT, claim the other as PPOR.Click to expand...
Almost perfect Jake...except we will probably buy something in Tassie before we are ready to move

This is what it would look like using your list..

1. Current PPOR : Sunny coast
2. Move out, get valuation. insert tenants
3. Purchase Tas ...put in tenants possibly cheap rent ...more as a caretaker type thing..help keep gardens productive, spiders away etc etc.
Declare income from rent but not claim any deductions as IP
4. Move to Tas stay from 6 months to 5.5 years
5. Move out, get valuation. insert tenants
6. Move into sunny coast for 6 months to 5.5 years
7. repeat steps 2-6 as much as you like (although valuations no longer necessary,right? - oh, and no "purchase" at step 3, obviously)
8. Decide to sell either place, claim it as PPOR for tax purposes to avoid CGT, stay in other place permanently.  

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never mind wrong track  

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