All Topics / Help Needed! / Living in Investment Property

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  • Profile photo of ve2sQuie1ve2sQuie1
    Member
    @ve2squie1
    Join Date: 2009
    Post Count: 16

    Two years ago, I purchased an apartment off the plan in Melbourne CBD. Settlement will be occurring in 3 weeks time. During that time I also purchased a house and land package, which I intend to live in once it's built later next year.

    What would the implications of the apartment's investment status be if I were to move into it for a couple of months while waiting for my house to get built? I imagine I wouldn't be able to claim any depreciation deductions, nor would I be able to negative gear any arising costs whilst living there.

    My second question is in relation to the FHOG. Because of timing issues with bonuses that have popped up in the last year, I am better off claiming the FHOG on my house and land package ($25,000 versus $12,000). It is my understanding that I can claim the FHOG on the house as long as I have not lived in the apartment for a continuous period of 6 months or longer. Taken from the Victorian SRO website:

    You and your spouse/partner must not have occupied for a continuous period of at least 6 months, a residential property in which either of you acquired a relevant interest on or after 1 July 2000 in any State or Territory of Australia.

    Does this mean I am able to move into the apartment for a period less than 6 months and not affect my eligibility for the FHOG on the house? I know I am walking a couple tightropes here but I am just trying to work out what my best options are while I wait for my dream home to be built.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Have you been claiming anything on the investment? Like interest on the deposit monies etc? Actually, it probably doesn't matter even if you have. If you move in it can be your main residence during this period – and you cannot claim anything at this time, but can after when it is rented. You will also have no CGT during this period.

    Not sure about the FHOG issues

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of ve2sQuie1ve2sQuie1
    Member
    @ve2squie1
    Join Date: 2009
    Post Count: 16

    No, I have not claimed anything as yet. I completely forgot / didn't know about claiming interest on the deposit when I paid it 2 years ago. Oh, how I've learnt since then.

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