One last thing – what are the thoughts around this

– If you sell the old home within 6 months of purchasing the new home – both properties are covered by the main residence exemption;

In my case, if I sell the Melbourne property within 6 months of the purchase of Brisbane property then:
1) Melbourne property sale proceeds will be CGT exempt
2) When I do decidde to sell the Brisbane property, then the sale proceeds from the Brisbane property will also be CGT exempt.

Please provide clarification.

many thanks
AM

• This reply was modified 8 years, 9 months ago by  AM2778.

I understand. So in summary:

1) When I sell the Melbourne property within the 6 year period, the sale event will be CGT exempt.
2) The new PPOR in Brisbane will be subject to CGT (if and when i decide to sell it).

What if, after a couple of years of selling the Melbourne property (for which the sale was CGT exempt), I decide to do the following:

1) convert the PPOR in Brisbane in to an IP and rent it out.
2) buy a new PPOR in Brisbane from the sale proceeds that I got from selling the Melbourne Property. Will this property be CGT exempt when I do decide to sell in the future?

Many thanks
AM

Thanks Terry.

So, I’m currently living in Brisbane. Thats my current PPOR.

With the my former PPOR, now IP, I need clarity on the following:

1) Can I claim tax deductions for the expenses incurred for the Melbourne Property Rental?
2) In the event that I do decide to sell the Melbourne Property, will I be paying CGT?

Many thanks
AM

Thank you superAndrew for the response and the details provided.
I will surely use the tool that you have provided and also look into doing the legwork to gain an understanding

Thanks heaps for the advice.
Much appreciated.

No particular reason. My guess is that freeing up the PPOR LOC with the IP LOC will have 2 benefits:

1. Can use the PPOR LOC for another IP pruchase – IP 2.
2. Have Cash flows of the IP 1 (rent and Loan Repayments) come out of IP 1 LOC.

No. PPOR LOC does not have a high rate …

Thanks

Cash Flow Management for one, offset to reduce repayments in to the PPOR. Also, if not from LOC, then from where should the IP repayments come out ?

Thanks

Thanks Terry.
I am paying the interest each month for the LOC. However, the funds are dimnishing in the LOC as a result of the IP IO Repayments and other outgoings.
My concern is that the LOC will keep diminishing upt to a point where it will be necessary to make additional repayments in to LOC to sustain the IP Repayments.

Is there a strategy to refill the LOC not to allow it to diminish up to a certain limit?

Thanks in advance.

I can understand the Capitalisation of Interest for the "Capital Costs" and the "Borrowing Expenses" from the LOC. This can claimed upto 5 yrs.

However, with all the outgoings for the IP (Water, Rates, etc.) + IP IO deductions coming out of the LOC, I assume that these outgoings would have to be paid back. That way the Outgoings for the next Financial Yr can start getting deducted from the LOC.

Clarification on this would be greatly appreciated.

cheers
AM2778