Forum Replies Created
Terry,
Yes I agree with you, but still unsure if the ATO will give the same CGT exemption for the front property as they do for the rear property from the date of purchase until the date of subdivision.
I haven't read anything that applies to my situation, but have found plenty of info on people who subdivide, continue to live in the old house and sell the new house.
Hi Terryw,
Yes I have gone through that website and in particular that document and the section 'Purchased To Use As Your Home', and from what I read, it still doesn't accurately reflect what my situation.
I understand I can sell the existing house CGT free, but it's blurry (to me anyway) if the new house will be exempt from CGT from the time I purchased it or only from the time I sell the existing house.
Can you give your opinion Terry?
Think about it.
The real estate agent would just get the first person who applied for it suitable or not.
The agent wouldn't care if they were good tenants or not as they won't have to deal with the tenant or you again.
You're better off looking for your own tenant.
Or, you can let the agent find the tenant, let them manage it for a year or so (to be fair to them) and then take over it yourself.
Having renting out a place before, I'll let the agent manage it for the tax deductible $1,000 or $1,500 they will charge annually.
It's not worth the stress IMO.And if you have a bad tenant you want to evict, they are worth their weight in gold.
Yes, I did live in there for a year or so and then rented it out for less than 6 years, and have lived in there for the past 3 years.
Have not owned another property ever.
So the house as is can be sold CGT free.
From a financial point of new, there's no reason to rent out your current house, it will be positively geared.
You'll be better off living in it, paying down the mortgage and then using the equity to buy 1 fully geared $225k unit.
One question, do you have a marginal tax rate of 31.5% or greater? If you don't, then really, you'll be better off not buying anything until you have paid down all of your mortgage.
Hi bigblueit,
Thanks for sharing your thoughts on it… my only concerns is what we think is 'right and logical' , the ATO may have a different view.
Have you sold both subdivisions without any issues? Your accountant and ATO didn't raise any eyebrows?
If you are correct, and I certainly hope so, I agree there are great tax benefits.. and due to this, I'm concerned the ATO may close this little loop hole.
I'm building the back house at the moment and wow, the building cost for an additional dual occupancy house is extraordinary high compared to a single house on a block…
But if I can get the tax exemption, perhaps I may do it again in future.
