Hi guys,
I've got a very keen renter for my current PPOR. I was always planning on renting it out once i'd renovated it. So i'm looking to move on. I'm thinking of putting a fully self contained (portable) donga in the back yard. It will basically be like a single room unit. I've enquired through the council, and waiting to hear back. (it may not even be possible yet)
So, if i was to live in a place out the back of my PPOR, turning it into a IP, how would this work come tax time? If utilities are all through the same address. Would it still be classed as my PPOR, because i'm on the same lot of land? I have about 40K available for redraw on my PPOR, which i would use to purchase the Donga. Could i say that it is an improvemant to the rental and still be able to claim tax breaks on it, even though i'll be living in it?!Would it really be a worthy investment in the longrun? Or would i seriously be better off using that 40k towards a deposit on another house to live in?
I have/had a heap of questions, if anyone has done something similar, or has any ideas, advice, or things i should do, it would be greatly appreciated!
Thanks.
you would be better putting 40k towards another rental property properties and go rent somewhere cheaper IMHO
I was originally going to rent a room at a mates, but i don't know if i can do that now. I was going to buy a house i could renovate again, rather than rent. That was if this unit thing didn't work out. Would i be better off getting in contact with the ATO for definitive answers?
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