Forum Replies Created
- Dan42 wrote:propertyboy wrote:
^thanks for your help, but where does it say you have to live in it straight after settlement? If you have a 6 year exemption, why cant you just rent it out from settlement then move in within that 6 year period? Which section says you have to move in straight after settlement? I cant find this anywhere.
Why would it matter if you rent out for 5 years then move back in or live in it straight after settlement then move out for 5 years?
You have essentially rented it out for the same period but just moved in the place at different times.
From s118-145 – Income Tax Assessment Act 1997
(1) If a dwelling that was your main residence ceases to be your main residence, you may choose to continue to treat it as your main residence.
(2) If you use the part of the dwelling that was your main residence for the purpose of producing assessable income, the maximum period that you can treat it as your main residence under this section while you use it for that purpose is 6 years. You are entitled to another maximum period of 6 years each time the dwelling again becomes and ceases to be your main residence.
If you rented it out as soon as it settled, then it was NEVER your main residence. The 6 year rule is only if the house was your PPOR first. That's just the law.
Don't try to rationalise tax law, you will go crazy!
So how long do you have to live in it after settlement for it to become your main residence? Which bit of legislation outlines this length? Where does it say 6 months? And how do you go about registering it?
^thanks for your help, but where does it say you have to live in it straight after settlement? If you have a 6 year exemption, why cant you just rent it out from settlement then move in within that 6 year period? Which section says you have to move in straight after settlement? I cant find this anywhere.
Why would it matter if you rent out for 5 years then move back in or live in it straight after settlement then move out for 5 years?
You have essentially rented it out for the same period but just moved in the place at different times.
Dan42 wrote:propertyboy wrote:Does the 6 year income producing rule still apply if you rent it out straight after settlement? Or do you have to live in it first? then you get 6 year period? If so how long is this period? ATO site does not clarify this.
First question – no, you must live in the unit first, to get access to the 6 year CGT free rule.
There is no fixed period for you to have lived in the unit. BUt you must be able to PROVE, if asked, that you lived there. You can do this by being on the electoral roll, chaging the address onyuor drivers license, having mail directed there, getting electricity connected etc.
The 6 year rule only applies if you are going to rent somewhere else, or move back in with parents etc, as you can only have one PPOR at a time.
^ I intend to rent my unit out and go rent an apartment in the city so I can be closer to work so trying to make two properties PPOR is not the problem, I just want this one to be PPOR.
Where does it say you have to live in it first straight after settlement?
So if you rent it out first it automatically become an Investment property?
Does the 6 year income producing rule still apply if you rent it out straight after settlement? Or do you have to live in it first? then you get 6 year period? If so how long is this period? ATO site does not clarify this.
Its very important that this place is CGT exempt because the investment value to me is on price appreciation not on rental return. Therefore I am willing to do anything to meet the requirment of this being a principle place of residence. Does it make any difference if I only have one property? If you only have one property does it make a difference? Are the rules distinguishing principle place of residence from investment for those people who have multiple properties? Or does it make no difference? If you have one property but do not live in it it's still regarded as an investment?
ps I do not plan on buying anymore property in the future I will only have this one. Does that straight away mean it will be my Principle place of residence? Or can a place still be an investment property even though you only have one property
thank you very much for your help.
My plan is to live in the place for 6 months after settlement, then rent it out legally through an agency and then go rent a place in the city for a couple of years. So if I do this can I still be CGT exempt
?????
Scott No Mates wrote:A typicial example is exclusive use whereby garages/parking or an enclosed courtyard is located on common property however if exclusive use resolutions (which are contained in the by-laws) are passed then individual owners may be granted exclusive use over a parking space (and it will not appear on the title). These provisions exist to enable compliance with council requirements but give flexibility to the owners to use the property as they require.how do I know then that there are not other areas on my title that are common land but just not showing on the title?
You say majority or is it unamious agreement?is there an act that overides the owners corporation act when it comes to possesion of common land?Because in the owners corporation act it mentions unaminous
Why wouldn’t they change the plan on page 14 aswell if that occured?furthermore,both plans are dated as 1969 which is when the sub division occured I think. If that did in fact happen what’s stopping them from taking more land from my front yard and making it common land?or alternatively what’s stopping me from doing that to the other units front yards?
yes but this contract was only presented after the auction was bid on
the one he sent me via email did not have that document of body corporate fees in it.
why is that?
Is it because they are considered more risky? Harder to sell off?
Of apartments, not warehouses, hence the use of the word differentiable
I am looking at West Melbourne because I want to live close to the city without being in it. I also think it it is a better investment as anyone can just put up an apartment block but a warehouse conversion is differentiable and there will be less supply of it relative to an apartment. I also believe docklands will be a major centre in Melbourne in the next 10 years so it’s a good area to get into as it’s close to the dockland region.
I am also assuming there will be no body corporate on a warehouse and this is one reason why I do not want to get an apartment.
Is it true that it gets really hot in summer and cold in winter?
Are rats a problem or is this just a myth?
Noise from nearby warehouses?
Graifitti/drug use/loittering/gang trouble which is usually associated with alley ways and warehouse areas?what about covenants on apartment blocks which say that everyone has to be over 55?
does that count?
say someone is over 55 can they live there and have people under 55 living with them?
what about with student apartments, if i buy a 2 bedroom student apartment can only students live in them?
hm just inspected a property worth 240 000 today,
weekly rental 215
caulfield north rental is 240 for 240 000 apartments,
capital growth opportunities may be there but cash inflows i think not
lol true
i just didnt now what pcm stood for, if it was per cm on an annual basis, now we are talkking
lol true
i just didnt now what pcm stood for, if it was per cm on an annual basis, now we are talkking
