We currently have a PPOR and two IP's. Sometime within the next 12 months we are looking at selling our PPOR and spending the next few years travelling. We are looking at two different options after selling our PPOR and are hoping that someone is able to clarify the advantages or disadvantages of going one way or the other. The first scenario is to rent out both IP's while we're gone. The second is to make one of the IP's our PPOR, then rent it out while we're gone as well as the other IP. When we finish travelling we will be building a new PPOR on land that we already own. I'm aware of the six year rule but what is the advantage of making one of the IP's our PPOR before we go as opposed to just renting it out as an IP? Any help appreciated.
Hi you can't use the 6 year rule in your situation. In order to qualify to use the 6 year rule you have to have lived in it from settlement. So it won't make any difference whether you move into it then rent it. But you can claim one as your PPOR so you will avoid land tax.
If you rent out your existing PPOR though (assuming you moved into it when you bought it) you can take advantage of the 6 year rule on that property.
Thanks Catalyst, you've answered my question perfectly!
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