All Topics / Legal & Accounting / Investment or PPOR

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of Luke DLuke D
    Participant
    @luke-d
    Join Date: 2009
    Post Count: 11

    Can I get a bit of advice on something?

    I recently enquired about a home loan but didn't know whether I wanted to buy my PPOR or an investment property. But while I asked for what I could borrow for both situations I wasn't surprised at what the difference in my borrowing capacity was.

    What I am not unsure about is, I immediately dismissed the idea of buying an investment property because of the amount of stamp duty I would have to pay (I live in Sydney). I have the money but I invest heavily in the stockmarket and it would use up all of my trading capital. But can I purchase this property as my PPOR and NOT apply for the first home owners grant and immediately rent it out and forgo any extra payments?

    The loan I have already applied for is interest only with an offset account.

    Luke

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

    Hi Luke

    Why not apply for the FHOG? For tax purposes you can't claim a place as your main residence until after you live in it. If you lived in it for 6 months you could rent it out and retain it as your main residence and it will be CGT exempt for up to 6 years. You can also get the stamp duty concessions and FHOG.

    If may be a bit disruptive to your family life, though, as you will be moving 2x in 6 months – in and then out.

    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

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.