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Thanks so much Marianne (and others). This is whole new world for us, so the advice is very welcome and very useful!
That all makes sense – thank you all! Um (bit embarrassed) I should have worked that out only my eyes/brain did not read the 'not' and hence my confusion.
So, my understanding about renting out our house is that all that is needed (apart from taking into account the financial advantages/disadvantages of different options re loan type, HECS/SFSS and the 6 year CGT rule, which would be best worked out with an accountant/financial advisor) is to start a lease agreement with tenants, and then all other financial stuff gets sorted out (income and allowable deductions) at tax time. The bank does not need to know?
Thanks again for all the advice and things to consider – it is most helpful.
Mini
Thanks so much for the advice!
I need to think more about the HECS and SFSS thing, as my view at the moment is that the sooner it gets paid off, the sooner my pay packet will be bigger! It's a fair chunk (top rates for both) of my pay.
I do want to ask about "Only catch is that you must not OWN another PPOR while you rent out your property (by renting a cheaper place yourselves is fine)." I am not quite sure about this part, whether it relates directly to the point immediately above, or …
Thanks for your responses.
In answer to these questions:
Not leaving the country, not going to live with parents: going to rent cheaply elsewhere.
The plan is to keep the house until the market improves, and then sell – no particular time-frame, but I doubt it will go past 6 years.
The loan is a discounted variable rate (8.7% another year left of the discounted rate).
Both of us work full-time, and our net income is around $3000 per fortnight.
Yes, we pay tax! Both of us pay HECS and SFSS as well
We are paying the principal plus interest, and currently pay $100 more each fortnight beyond the minimum. We can redraw for a fee (I believe, and have the whopping sum of $4600 for that if we want!).
