Hello all, I’m very new to purchasing a property and would like to ask people’s feedback on purchasing a property that is currently under lease. The current owner is renting the house out to tenants who are on a lease up to November this year. If I purchase the house, I would like to move in when the lease runs out in Nov and this would become my principle place of residence.
What are some of the extra costs involved in purchasing this property as opposed to buying a home that I can move into straight away.
For example, I believe I have to pay higher stamp duties as this would be considered an investment property? Would I have to pay CGT if I decide to sell the home later?
Thanks in advance for any advice you can provide.
Hi Lil,
As long as you move in in the first 12 months you should be able to get the FHOG and stamp dute exemption. With regard to CGT, check with an accountant, but I believe that as long as you don’t claim interest on tax you will be able to get a full exemption. At worst you would only be liable to CGT on a portion of the capital gain when you sold. If you have a good acountant you will have no problems.
Regards
Alistair perry
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