I am mid-renovation and am applying for a six-month contract position in a city too far to commute.
As the house is unsuitable for renting in my absence, can anyone advise whether the negative gearing (interest payments, etc.) can still be claimed if I choose to leave it empty and live somewhere else?
JoC,
Could you not instruct the renovation from your new place of residence? Ie, give a mate your keys and when you have ask a tradesman to do something, get them to visit your mate for the keys.I think it was minimogul that renovated a house without even being there?? (Correct me if I am wrong there…) It can be done. The quicker you finish your renovation the quicker you’ll get a paying tenant. Why stop just because moving away!
Good luck anyway JO.
Steph.Success is 1% inspiration and 99% perspiration.
joc
depending on the condition of the house you may find a housesitter may be an answer some like the idea of a bit of handyman work in return for a holiday It may be claimable ??? if you like more info give me a call [email protected] I’m not a handyman
aaronThanks Steph/Aaron,
Obsessive/compulsive about doing the reno’s myself. Two years without a bathroom door sort of ties you to a place…
I’m not fussed about finishing the place, particularly since I intend to return.
What I’d really like to do is vacate for the six months, hike up the loan by about $30,000 for the renovation that I never could afford and not have to be there for the showers at the neighbours and kitchen consisting of microwave and kettle only.
If this can all be done as an investment property rather than PPOR I’m hoping that IP conditions apply as if it was rented or being conditioned for the same.
The interest deductions can only be claimed if the property is available for rent.
Perhaps a house sitter paying a reduced rental might be an answer.
Cheers,
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Jo,
I believe that the property simply needs to be available for rent. So at the very least, you need to advertise it.
You’d be better off getting written advice from an accountant before you try to claim any of those expenses. Getting caught out by the ATO is probably going to be an unpleasant experience – audits, penalties and interest. I wouldn’t try it unless you were genuinely going to rent it out to someone who didn’t mind living there while the place was being renovated. However, they’d have to pay a commercial rate of rent as well, otherwise it might not work. If you’re going to leave your personal belongings in the house, that makes it harder – you probably only be able to rent it to someone you know and trust.
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