Hi everyone
We have recently made a decision to move interstate. We've decided to rent out our PPoR, so we can always return if we decide to do so.
The question we have now is whether to rent or buy another property in the new state for us to occupy over next 12 months.
We thought, if we decide to leave, we'll at least have acquired a property which we can then rent out or sell, instead of paying rent with nothing to show at the end.
We wonder how will this affect us from tax point of view. Does anyone know? Have you ever been in the same situation as us?
Thanks!
Nani
Email MeThe road to success is always under construction
You cannot have two houses at the same time as PPOR unless selling and then buying..
There is an overlap time if you are selling one house and then moving into another I think the time is 6 months
However you can deem the original PPOR as your PPOR for up to 6 years even if you are renting it out.
You need to be able to prove you were living there ie have proof /records of living there .
However the other house you purchase would be deemed as A CGT liable property as you can only have PPOR on one property.
see
https://www.propertyinvesting.com/forums/getting-technical/legal-accounting/4332172?highlight=PPOR%2Cexemption
for more details
as this is a common question asked on the forum
https://www.propertyinvesting.com/forums/property-investing/help-needed/4331897?highlight=PPOR%2CexemptionThank you!
Nani
Email MeThe road to success is always under construction
If you retain your existing PPOR as your pPOR and purchase interstate then while the second property is not used to earn income any expenses of owning eg interest maintenance rates insurance will form part of its cost base for CGT purposes
I think we are probably better off renting for first 12 months.
If we decide we are happy with the move, then we can sell our current PPoR without paying for a CGT. and purchase a new PPoR.Thanks for the advice, guys!
Nani
Email MeThe road to success is always under construction
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