Forum Replies Created
So choose 1 before selling? Don’t intend to sell for at least 5 yrs Reservoir would be the one to choose as it has gone up in price by 400-500% and anticipate more in 5 yrs unless some economic down turn Our new PPOR is possibly similar price to when we bought it 1 yr ago
As we didn’t get a market appraisal when we started renting out our previous PPOR last year, is it too late?
Thanks for your info and will get tax advice Duden the trackHi just wondering about the scenario in the finance2011 post So the 1st PPOR is rented out for 6 yrs while living in the 2nd PPOR Can you move out of the 2nd PPOR and restablish the 1st one as PPOR prior to selling? Can the 2nd one be rented out?
Thank you, Terry. I will get tax advice as it is confusing Below is what I viewed on the ATO site:
To be eligible for the main residence exemption, the following conditions must be satisfied:
the taxpayer is an individual
the taxpayer is an Australian tax resident
the dwelling was the taxpayer’s main residence throughout the ‘ownership period‘, and
the dwelling was not transferred to the taxpayer as a beneficiary in, or as the trustee of, a deceased estate.Reservoir property is not our main residence as we now live in the house we bought in Seaford
Below is also from ATO site
Where the dwelling is used to produce assessable income when the taxpayer is absent (for example, is rented out), the exemption will apply for a period of up to six years. If the dwelling is re-established as the taxpayer’s main residence, another maximum period of six years applies if the dwelling is again vacated. The taxpayer can only continue to apply the main residence exemption to the vacated property where no other dwelling is treated as a main residence during the period of absence.
So from what I have read, I can rent it out up to 6 yrs then need to move back in to reestablish reservoir as the main residence and remove Seaford as main residence as can only have 1
Tenant of unit is leaving next month not renewing the lease We have been sent a letter saying a letting fee of $275 will be charged and it is optional if we have advertising , photo on board etc (additional costs)
They wont be advertising until another week
Should we look around for another property manager? This agent has always been a bit slack like not informing us a couple of times that rent wasn't paid and we didn't know until the money wasn't in our account when due and not completing a 6 month inspection
Also we had a split system put in the unit in July how dos that work as its not on the condition report that was done at start of lease in April The 6 month inspection that turned out to be 9 months did not include an updated the condition report.
Also when tenant leaves can we deduct from the bond money if
The garden has not been weeded to original state
remote lost for split system?
In Vic the Granny flats that are only for dependent persons are the ones owned by DHS or old Ministry of Housing
They supply them and charge the person 25 % of their income and remove the unit when the person no longer lives in it
It is a means of providing subsidized housing to those on pensions/low income etc
Home owners can pay for their own private granny flats/bungalows to be built and it has nothing to do with DHS as they own it
and anyone they like can live in it. Some people get them built for teenagers grandparents etc rather than extend
Scott No Mates wrote:Contact your local A/C supplier/installer – they will check out and recommend something to meet your requirements.Thanks
UPDATE:
Havent looked for a new agent yet as thought we would discuss issues with PM and see how things went. AND this is how things went
Tenants didnt pay agin and we havent had any rent since November 1st into our account. We have a hearing mid Jan for possession, bond % rent. The tenants have most likely moved out with keys etc
But thats how it goes ivestin is a risk as you have to take the highs with the lows Just hoping they dont turn up at hearing and then get longer to stay without rent so we can get on with it and maybe have tenants in by Feb Bu will be looking for another agent but only transfer if confident with themCheers evryone!!!
Reservoir and it is not just the PM it is the agent itself As we also had problems a while ago when thre was a change of tenants Our PM was on leave and we had two different people ringing us giving us totally difffernt info No we intend to change agents
I dont know if they are
But I think for now we may top up the laon and ensure the new loan is an IO with offet Is this the way to go for now?Thank you
The ANZ banker has been very helpful interms of getting our IP loan but I wonder when all is said and done he is an ANZ one so woudnt he have to look after ANZ? I now ask why didnt he advise us to have sign for an IO loan with offset? as many seem to recommend here?I mant we are NOT jumping into anything as yet
Thanks But we are jumping into it until we get all the information and decide whcih way to go
We will also speak with out tax accountant soon
Just getting info from here but not acting on any advice as yetWe do know though that we want to rent somwhere else as our PPOR is too big to maintain and our IP is too small to live in we need something in between It is not in our interest to sell any of our properties as yet
Ok
So this is what we have decided to do but need advice
We do not want to sell our PPOR for at least another 5 years but plan to rent out a smaller place with low maintenace The rent we get for our PPOR would cover the rent for the residence we would live in We also want to add our car loan $565 pr month and CC $200 pr month (with the plan to not have a CC as we have a visa debit)
Some questions
In what order do we change the PPOR loan to IP loan and do we top loan while it is PPOR loan or when it is IP loan?
Also we do need to but new fittings for main bathroom and pay for fittings by plumber and electricaian etc
Can we claim capital improvement or do we have to wait until it is an IP for 12 months?
Advice appreciated
CheersWell done I have not commented before as could not believe the negative replies especially about how many children you have That is on ones business Some people truly need to get a life
Hi one more question
Should I convert the PPOR loan to interest only loan before an IP loan or when we convert to an IP
Also what is the process of converting to an IP loan?Do we then have to move out immediately? as we would need to fix the bathrom before it is rentable (we currently use our 2nd bathroom most of the time)Hi Jamie
thanks for your reply very helpful although I am still a bit confused
So for e.g we bought the proeperty for $170k in 2000 and now its worth $450k if in 10 yrs we sell for e.g. at $600k does that mean we only pay CGT on $150k instead of $430K? Correct me if I am wrong
Also if we do go ahead and convert to IP can we claim for any improvements etc and interest? We deseperatedly need to replace the main bathroom as it has worn out bath vanity etc that cant be even repaired. Other improvements are jsut cosmetic as we had a complete new kitchen etc installed in 2005
ThanksRyan McNamara ANZ mobile lending
You almost dont have to leave your houe he comes to you and does all the work
He worked well above our expectations in pushing our loan through after having alot of problems with vendor etc
Just google him and his contact details will come upThanks for all replies very helpful but I do have some reserching to do before making big decisions. The ANZ loan is a simplicity one.
As we dont want to get into debt over our head we wont buy a 3rd property for a few years as we still also have a $20,000 toyota loan owing (a rip off too like the car but not the interst rate)
We still want to move out of our PPOR as too big and our IP too small but we dont want to sell either yet as balance still highWe were thinking of renting privately a house to suit us for a few years until we finsih our car loan, have more equtiy in our IP and PPOR and then buy 3rd property with the viw to selling our PPOR in 10 or more years
We would easily get the same rent for our POPR that we would have to pay for a house to live in most like more then but if we could claim some tax break it would be goodQuestion Can we convert our PPOR loan to an IP loan? een if it means a new loan application? If so can we then claim tax on interest and small renovations as it is an old house
Thanks
happy New Year!!!Thanks for your prompt reply This forum is so helpful but I am keen to know more about interet only loan If we wanted to change our PPOR loan to an interet only loan what would the fee be approximately? We are with ANZ and it is a loan with redraw now wish it had of been an offset account
Yes we would possibly have our PPOR as an IP as well as the unit we currently have as IP We just dont want to sell now if we can hold on to it it will be worth a lot more in 5- 10 yrs If we had to sell one we would sell the unit but even then not for a few years
The main thing we need to work out is when we will be in a position to buy a third property to live in as we dont want to saty in our PPOR, our current PPOR needs a bit of work . We are in the middle of painting the interior and exterior (also main bathroom needs to be gutted as not one thing in it is salvagable) and the backyard and front yard is too time consuming plus we are on a main st that we want to get off.While the a lender would be looking at our equity would the main thing also be ability to pay all 3 loans and would rent for 2 of the properties be taken into account? How much equity would we need?
We are willing to sit on it until prices rise again but it could take time and then the place we want to buy would rise to
Appreciate any ideas
Thanks
