Please advise is the following sensible or are we going to be hit with CG tax and others?? We are considering selling our house in Healesville and possible renting it back or renting another. This we believe i would free some monthly cash for us and at least get back our deposit to make available for reinvesting in +cashflow property. Any advise welcome.
Hello Whittleherbert,
Is the property in your personal name? Have you been the only resident at the location ? (i.e. you didn’t rent it out before you moved in) If the answer is yes to these qu’s then you shouldn’t pay CG tax. Your own home is CG free!!!![thumbsupanim]
Cheers
KelWhile your home is CGT tax free if you do sell it is also possible to retain this as your only PPOR for a period of up to 6 years without incurring CGT.
I believe that you do need to establish where you are going in the long term – the tenor of the questions indicates to me that there are lots of short term objectives in mind but I do not get a sense of what your long term goals are.
In the end it is your long term goals that will determine what you should od with your house.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958Thank you Derek & Kel for your answers.
Kel :We have lived in the house since we bought it and still here at present.
Derek: Firstly please excuse my ignorance but what is a PPOR?
Yes we do have long term goals – in brief, we’d be moving to Qld next year, we would rent until then then rent a property for ourselves in Qld until in a position to buy for ourselves. In the meantime the idea is to raise some capital , reduce our monthly expenses so we can start investing in some positive cashflow properties.
I had heard there is no CG on your own home but wondered if that is still the case if we were not reinvesting into another home for ourselves. Would you mind if I called you – if so when would be convienient? many thanksHi Kel,
PPOR = Principal Place of Residence which is ATO speak for your home.
In broad terms your PPOR (home) will remain CGT free for a period of up to six years provided you do not buy another home in the meantime. By attending to a couple of details you are able to lock in your gains on this property such that any gains made while the property is PPOR remain CGT free.
Whether or not you sell now (or later or ever) will also be dependent upon your feelings about leaving your ‘home’ to tenants and where you think growth in Healesville will go in the period while you are away.
If you are thinking that you need to sell the property to access some capital to be used as deposits for investments properties then you can think again. It may be possible for you to release equity that you have in your existing PPOR as a starting point for your investment journey. You do not need the cash – equity is as good as cash.
More than happy to take a call – best time is during the day. No strings attached.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Someone else who has seen the light and is making the move to the Sunshine State.
Richard Taylor
Residential & Commercial Finance Broker
**Lodoc Commercial loans from 7.39%**
Licensed Financial Planner
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
