Hi guys

Thank you for the response.

@ Benny: yes, we lived in property A from day one and even though we moved interstate and purchased property B to live in, we continue to nominate property A as our PPoR.

@ Terry: Thanks for the links. Much appreciated. FYI – the timeline is as follow:

2002-2010 – we lived in property A – our PPoR.
2010 – moved interstate and bought property B to live in. Property A rented out but continued to be nominated as our PPoR.
2013 – bought property C – rented out.
2014 – property A sold. We are planning to nominate property C as our PPoR.
2015 – construction is due to commence on property C
2016 – hope to move in to property C!!

It is quite a complex one. We’ve spoken to 2 accountants and they both have different views – Go figure! We have called ATO directly ourselves, and it seems property A can be exempt from GST since it was our PPoR and continued to be so, and it was sold within 6 years of being rented out.

Cheers!

Yes, ouch it is!
Which inspector are you referring to? The original building and pest inspector?
Don’t know. Just ordinary building and pest inspection guy.

Hi guys

thanks for the response.

We had a building inspection done before we purchased which told us none of these issues. The guy is nowhere to be found now. We didn’t know about the septic issue. Over these last 4 years we weren’t aware of the problem. We are told the waste had gone to somewhere somehow but not anymore.
It’s an old house in a country side. Safe to say the builder is long dead!
HIA is our problem. They got involved without our knowledge. They have now gone through whole house for every little thing and told us we have one month to fix everything or it will be listed a substandard house with rent control regardless of the fact we weren’t aware of the problem and that we are willing to fix the septic tank issue immediately.

We shall never again buy an old house in a country!!!

Thank you, Richard.

Yes, the redraw will be set up as a separate loan to our PPoR, so the interest can be deductible. The plan is once we move into the new one (in 2 years time), we’ll convert our current PPoR to be an IP. We have asked our mortgage broker, but the solution she came up with was either a 10% deposit with LMI, or a 20% deposit.  Hence our dilemma.  Perhaps we should have researched your service for options first!

I think we are probably better off renting for first 12 months. 
If we decide we are happy with the move, then we can sell our current PPoR without paying for a CGT.  and purchase a new PPoR. 

Thanks for the advice, guys!

Thank you, guys!

It's always learning and more learning!

Yes, Terry.  We have already cried over it !!

This happens in the days when we didn't know any better and depending on our mortgage broker who didn't advise us any other ways.

We hope that we can still continue to build our investment portfolio based on where we are now.