scenario A & B

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dj_siek
Member
@dj_siek
Join Date: 2006
Post Count: 51
March 25, 2007 - 1:24 am
HELLO!
I have been to a few property inspections. Its really really exciting buying my first one.
Upon reading for hours on end on this forum and sites about CGT and PPOR – FHOG.
Scenario A:
Say if i were to buy an apartment for 250k. 2 bedroom. and rented it out straight away (two tenants – two bedroom) and moved in in the last month of the 12 months. and then still rented one room out… would i be eligable for FHOG still? and exepmt from CGT?
OR
Scenario B:
I moved in straight away and rented one room out to help with my expsneses (id def need it). will FHOG still be all good and CGT?
I have heard on a current affair about investments partners who lend you like 30k or whatever and then they take like 40% of the profits? anyone had any expereince with this?
Thanks guys
Joel
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 28, 2007 - 8:11 am
Hi Joel
A
I believe you would probably qualify for the grant as long as you live in the place within the first 12 months.
CGT – you would be charged on the growth during the first 11 months, and half the growth from there on. If you rent one room out and declare it, then you lose full exemption and can only claim it on the share you are living in.
B
I think you would get the grant, but again only get CGT exemption on 50% of the property – ie the share you are living in.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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duckster
Participant
@duckster
Join Date: 2004
Post Count: 1,674
March 28, 2007 - 11:26 am
The 40% taken from capital profit sounds like the new shared equity loans that Adelaide bank has introduced where they invest 20% and take 40% of your capital gain when you sell. These are for first home buyers and there is a limited amont of money being released.
v8ghia
Member
@v8ghia
Join Date: 2005
Post Count: 871
March 28, 2007 - 12:22 pm
FHOG is a great provision for first home owners – not investors. (and there are plenty trying to rort the system) However that said, scanario A – You must move into your home and live in it for a period 6 consecutive months within the first 12 months of purchase price. (generally -depends on state – some where 6 mths) Sceanario B If it was an unofficial arrangement for board, it is between you and the boarder only, if you are not claiming deductions and declaring rental income etc, and of course you would have no lease etc. (Such as someone living with you and giving you a donation towards expenses etc) All the details ar very clear at the following site, and you can then search state specific. http://www.firsthome.gov.au/ All the best with your new home.