Not for nearly 6 years unless you buy yourself another home elsewhere.

Cheers

Elka

Hello tuggerwaugh

I rent one of my IP's to a family member and don't use a PM.
 
They just transfer the rent into my account each month, clearly marked as rent for this IP and this seems to be sufficient. I haven't had this checked by the ATO but my accountant is happy with this arrangement. 

Naturally you need to keep the documentation for all outgoings (insurance, rates, repairs etc ).

As long as you rent out at market value you shouldn't have a problem.
I didn't ask my family member to sign a lease but it has been suggested on this forum that you should, even if it's only a very short one, to protect both parties in case of disputes.

Maybe you can search the site for more posts on this topic.

Hope this helps
Elka

The problem may not be that you lose 6 months out of 2 years CGT exemption but that, because it will be seen as having been an investment property first, it will not qualify for the 6 year rule.  This is what you're planning to use based on your original post. 

 (That's the one that says that you can rent out your PPOR for up to 6 years without losing it's CGT free status. )

At least that has always been my understanding of the rule but I would be happy to be shown that I am wrong.
You should check this very carefully with a good accountant.

My suggestion would be to see if you can get vacant possession.
If the vendor is keen to sell then get him to approach the tenants with an incentive to vacate the property before you settle on it.

If he lets them know that their lease will not be renewed and offers to pay their moving costs now that may do the trick. 

Worth a try.

Good luck
Elka

Congratulations.     

I imagine the first thing you need to do is find out about retail leases and what outgoings are usually the responsibility of the tenant ( insurance land tax, rates, water, small maintenance? ) as well as any obligations/restrictions you have as a landlord. Also what is usual as far as yearly rental increases go (CPI or  a fixed percentage?) and decide what is the shortest lease you will accept.

All very different to residential so this is the time to go educate yourself if you're new to this area. 

One tip I have is if you find a prospective tenant who wants to negotiate a reduced rental and you are willing to drop the price……. do not reduce the rent. Grant a small rent free period instead.

This way your property keeps its value and the decrease does not impact the rent for the following years. 

Now that you have bought it can you tell us where it is please?

Good luck
Elka

Hello Staggerlee

Sorry but that's not true. Stamp duty forms part of the cost base and only comes into play for the purpose of calculating the CG on a property if it's applicable.

Perhaps you can read the info on this site to understand about tax deductions for an investment property.

http://www.propertyinvestment.net.au/tax-deduction.htm 

You might like to look into doing it the other way round if you're not emotionally attached to living in your own property.
 
First live in the home for lets say 6 months and then move and rent it out for up to 6 years. This way many expenses, the biggest being interest on your loan, become tax deductible without ruining the capital gains tax free status of your home. 

Your accountant will be able to explain this and help you crunch the numbers to see if it's worth while for you.

Hope this helps
Elka

Hello Paul

As it will be a brand new house you will also have great depreciation deductions to claim which will also help save tax on your other income.
 
Speak to your accountant about this too and maybe get him to help you calculate your actual holding costs.

Cheers
Elka

Hello Maree

By your title I assume that the lease is still current in which case you, as either the renter or the owner, need a very good reason to be able to terminate a lease. After all it's a binding contract. 

If it's only because the tenant wants to move then I think the usual procedure is for the tenant to advise the agent and ask permission to terminate the lease. Most owners will then agree subject to the current tenant paying the rent until a new tenant is found plus all the costs associated with re leasing the property (advertising, agents re leasing fee etc.).

Depending on how long the lease still has to run, the tenant may be able to negotiate some of this. If it's a new 12 month lease then I can't see much room for negotiation but if it only has a couple of months to go then that's a different story. At least it would be for me. 

If the lease has actually expired then you are usually on month to month tenancy which means that both parties only need to give each other a months notice, in writing, to vacate. 

Hope this helps
Elka