All Topics / Help Needed! / Buying investment property to live in a few years time

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  • Profile photo of Mrs VengeanceMrs Vengeance
    Member
    @mrs-vengeance
    Join Date: 2011
    Post Count: 2
    June 14, 2011 - 11:07 am

    Sorry if I've chosen the wrong forum for this…..

    Hubby and I currently living in our 'short' term house (5-7 years), and looking at our next move to be the last move for a very very long time.  I have very specific priorities for this next house, and just looking at the possibility of finding the 'house of my dreams', renting it out for a few years (I believe 2 years is the minimum) and then moving in ourselves.  In the meantime, doing any renovations that we want to do to the 'investment' property, in order to get tax breaks on this before we move in…

    Any suggestions, or ideas where to find this information online (just trying to do initial research instead of going straight to accountant or relevant investment property related professional)?  Or is it just better to buy/live in it from the start?  Or any other ideas?

    Thanks in advance ;)

    Julie

    Profile photo of CatalystCatalyst
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    @catalyst
    Join Date: 2008
    Post Count: 1,404
    June 14, 2011 - 11:32 am

    Don't forget to take into account that you will pay capital gains tax when you sell the new place if you rent it out first.

    Also doing the renos before you move in will increase the capital gain while it was rented so can increase the CG further (if you get an evaluation prior to moving in). In that case you would be better off not getting a valuation. Short term gains can lead to long term losses. Tread carefully.

    What do you mean by "I believe 2 years is the minimum"? That you wouldn't be willing/able to move in under 2 yrs?

    Lots of things to consider- loans, rent etc.

    Profile photo of Mrs VengeanceMrs Vengeance
    Member
    @mrs-vengeance
    Join Date: 2011
    Post Count: 2
    June 15, 2011 - 1:31 am

    Ahhhh – thanks for that…. I am only 'just' starting to look into these things, and for some reason, I thought there was an exemption for CGT with something to do with how long you live there for or something like that :S 

    Could you suggest who would be appropriate for us to talk to (basically give them our financial situation and what we are planning in the next 30 years or so) for us to work out how/what we are going to do?  Would this be more of a financial advisor or a property investment 'specialist'?  Totally lost here….

    TIA,

    Julie

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