Can I get a bit of advice on something?
I recently enquired about a home loan but didn't know whether I wanted to buy my PPOR or an investment property. But while I asked for what I could borrow for both situations I wasn't surprised at what the difference in my borrowing capacity was.
What I am not unsure about is, I immediately dismissed the idea of buying an investment property because of the amount of stamp duty I would have to pay (I live in Sydney). I have the money but I invest heavily in the stockmarket and it would use up all of my trading capital. But can I purchase this property as my PPOR and NOT apply for the first home owners grant and immediately rent it out and forgo any extra payments?
The loan I have already applied for is interest only with an offset account.
Luke
Hi Luke
Why not apply for the FHOG? For tax purposes you can't claim a place as your main residence until after you live in it. If you lived in it for 6 months you could rent it out and retain it as your main residence and it will be CGT exempt for up to 6 years. You can also get the stamp duty concessions and FHOG.
If may be a bit disruptive to your family life, though, as you will be moving 2x in 6 months – in and then out.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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