- Hello guys.
We bought a townhouse in 2009 and got the FHOG. A year later we made it an investment property and bought another small townhouse as the PPOR and paid the stamp duty accordingly. A bit later my wife got pregnant not quite as planned and suddenly we need a bigger place for the new born and parents coming over to help. So we bought the third property.
Now we need to rent the 2nd townhouse out to ease the financial pain but we have only been living in it for 8 months. Do we need to let the OSR know and pay the difference between the stamp duty of a residential property and an investment property? If we don't, can we still claim tax return on the townhouse as an investment property?
Also will we have trouble with OSR?
Any experience and knowledge to share? Any suggestions?
Thanks a lot!
Was there any FHOG discounting of statmp duty on the second property. I understand some people claimed FHOG on one property in one person's name and then repeated the process in the second persons name.
If not then OSR is only interested in the value of the property at time of purchase. Whether or not it is an investment proeprty or home is largely inconsequential – excepting comment above.
The second property will be treated like any other property – declare all income and claim all expenses.
You may also wish to consider organising a depreciation report for the property and speak to the bank about converting the loan for this property to interest only if not already done so. At the same time if you haven't applied either of these to the first property it would be advisable to do so.
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