All Topics / Legal & Accounting / First home buyer – renting it out for 1st 6 months

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  • Profile photo of VinuVinu
    Member
    @vinu
    Join Date: 2007
    Post Count: 2
    July 2, 2007 - 4:35 am

    Hi,
    I have bought my first home using the first home owners grant in QLD.
    However, I will not be able to move in for another 6 months.
    I am planning to rent it out.
    My mortgage repayment is much more than the rent I will get.

    My first question is will I be paying tax because of the rental income?

    My other question is if I paint the house, do some repair and stuff before the new tenants move in, will I be able to claim all this back as expenses from my tax given that its going to be my principal place to residence in 6-8 months?

    Thanks in advance
    Vinu

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    July 2, 2007 - 5:13 am

    You will be entitled to a tax refund for the time you rent this proeprty out if your costs exceed your income.

    You will not be able to claim these repairs as they are capital in nature.

    Cheers,

    Profile photo of VinuVinu
    Member
    @vinu
    Join Date: 2007
    Post Count: 2
    July 2, 2007 - 5:16 am

    Thanks Simon.!

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    July 2, 2007 - 7:20 am

    Vinu

    You might also want to bear in mind the residency requirments to claim the concessional Qld Stamp Duty as I assume you applied on the basis you were going to be living in the property.

    Richard Taylor | Australia's leading private lender

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