I’m currently in negotiations to purchase a 2 bedroom unit. I will have early access to the property & it is anticipated for the property to settle in 4-6 months. A family member will live in it after getting early access & once we have renovated it. I will move in once it settles. I have been reading that if it’s your PPOR & you take on a boarder (in my case my family member) within a few days after settlement then your stamp duty duty & other legals will be removed.
Does anyone else know more about this or have done it before? Is there a minimum timeframe that you have to live at the property or just connect the utilities in your name?
never heard of it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
maybe you are referring to the First Home Owner exemptions?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Here’s what Noel Whittaker states in his book Saving tax on your investment property. ” If they (ie boarders) move in just a few days after you settle on the property, then a market value reset will simply remove your buying costs (such as stamp duty, searches and legal fees) from your cost base.
Because it’s is your PPOR, your suppose to declare the income from boarders so is this why your upfront costs maybe removed? I will speak to a repeatable accountant regarding this, sounds interesting but need more info.
He is talking about CGT I think. You still have to pay these costs though.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry. Interesting, he does talk alot about CGT. Will have to do some more research. Thankyou
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