I am planning to move out of my PPOR and turn it into an IP in the coming months and I know I need to get a valuation done for CGT calculation purposes. I refinanced my loans earlier this year and had the property revalued in October by the bank. My question is whether this valuation would be recent enough in the eyes of the ATO for calculating CGT?
Hi there
I'm no tax expert but I would have thought it would be ok – maybe grab an appraisal from an REA to confirm that the old val still stands.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Do you have the valuation?
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
Values will not change all that much in that time.
As I have said before – wont take much to get a couple of “appraisals” done by a real estate agent and they are free. I have been told before that this could be used for ATO purposes- I mean really – most people dont even go to the trouble so are them made to work back and provide an estimate.
Get 3 real estate agents in and see what they come up with.It is pretty hard to argue with 3 appraisals if they are all in the ball park.
As a former real estate agent – we would often have the valuers ask us what the market is doing – your real estate agent is close to the action.
I know some people who post here say that a REA appraisal is not worth the paper they are written on – but agents I know are always very close to the mark.
Yes, and as Terry says – do you have the val? Some banks dont release it or disclose itThanks for your advice guys, that’s reassuring.
Fortunately my mortgage broker is a personal friend, so he didn’t have any issues with handing the valuation over to me. However I’ve heard most mortgage brokers will also do the same.
My main concern really was that if I were to get a valuation done in the current market, I would hate for it to come back lower than the last one, and eventually have to use the lower amount to calculate CGT if I were to sell.
I’ll be sure to get an appriasal done by the leasing agent. Off topic, but should I except prospective property managers to come out to the property and meet on site, or will I need to meet with each at their office first?
You will meet Sales people – not property managers…. that is if you want the sale price value- for CGT purposes.
You will meet the property manager if you are looking for rental only.
You meet them where you want- best to meet at the property to ensure they get a good look at it.
As I have been saying here – where I am property prices have not fallen. You might be pleasantly surprised.
Check out RP data for the free report on your area to get a FREE idea. At least this gives you an idea of what your local market is doing.
CheersConsidering there could be savings why not just commission a new valuation yourself and tell the valuer what you want it for. A valuation coming it higher could save you a few thousand in CGT. If it comes in lower don't use it!
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
Hi there,
Browsing this forum make me realized I've been missing steps when converting PPOR to IP. Apart from getting property revaluation, is there anything else that needs to be recorded prior changing to IP?
Thanks
adam.p wrote:Hi there,Browsing this forum make me realized I've been missing steps when converting PPOR to IP. Apart from getting property revaluation, is there anything else that needs to be recorded prior changing to IP?
Thanks
May need to notify the state revenue office if land tax is payable.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
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