I have two investment properties
Property A – I have owned for 10 years + and it is rented out. I do not claim depreciation on the building but do on chattels – I have a nominal mortgage against this property.
Property B – I purchased in 2006 and it is rented out. I claim depreciation on the building. It is mortgaged to about 70% LVR.
I am moving back to Australia having been out of the country for 11 years and are considering the following options:
1. move into Property A and convert to PPOR and pay of nominal mortgagage – What are the tax implications? Would I be better of selling?
2. Sell Property A and B and buy PPOR?
3. Retain both properties and purchase a PPOR when in a position to afford to do so?
Look forward to your feedback on this matter.
Regards
MissPatIf you live in A then you would have lower or no interest to pay.
If you sell you would be up to CGT. maybe sell one each year if you decide to sell (to lower your income). Work out the CGT implications of selling.
If you buy a new PPOR you will be paying a large mortgage (unless you have cash) which won't be deductible.
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
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