Hello
What do people think of renting a property to live in and renting our primary residence to claim the tax benefits. Our primary residnece would be positive cashflow and the with the rental I could claim a home office.
talk to an account and do the figures. We’ve decided to rent out our primary residence as it’s cashflow nutral and rent interstate as it’s about $3000 a year cheaper and we’ll live in a nicer quality home. I’m no expert let the figures do the deciding.
Hi Pressic,
It can be very financially advantageous to do this, HOWEVER bear in mind, that should you decide to sell your PPOR at any point, you had better make sure it is within 6 years of using it as a rental as after this period you lose your CGT exemption.
BTW Pressic, where would your home office be for you to make a claim??? The reason I ask this, is because any revenue generating that is conducted out of one’s PPOR makes it liable for CGT application. Therefore, you could disregard the above paragraph, as your PPOR would not be CGT exempt fully, but rather apportioned accordingly due to running a business from your home office.
Cheers,
Jo
Heaps of investors do this if the numbers stack up. It is all about the numbers to most but you lose the benefit of living in your own home as well.
Good luck.
Robert Bou-Hamdan
Mortgage AdviserM: 0414 347 771
E: [email protected]
W: http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter: See – http://www.mortgagepackaging.com.au/index_files/newsletter.htm
Comments made are of a general nature and should not be construed as individual advice.
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