Hi all
Apologies for asking this question again, as I'm sure it's been answered lots of times, but I can't seem to find the answer...
My scenario:
I currently have 2 IPs with no PPOR. I am renting with a friend (not in either of my places) and a financial advisor has told me that I could be smart about my investments and convert one of my IPs into an PPOR, so that i can take advantage of the 6 year CGT free rule.
This is an opportune time, as the tenant in the property has just moved out.
I have owned the property for 4 years, and it has been tenanted since day one. I have never lived there previously.
I understand that to take advantage of the 6 year rule, I need move into it for a certain period of time. Then at some stage down the track I could move out and then rent it out again, which would thereby allow me to claim the CGT exemption from any gain from then over the next 6 years.
I understand the principal, but want to make sure i do it all legally of course. So I have questions I'm hoping someone can share the answer to?
1) For what period would I be required to live in the house before moving out again?
2) At what point do i need to get a valuation or valuations done? Which presumably i need to do, as down the track i will need to have a figure that the property was worth, above which CGT should not apply (assuming i sell it within 6 years, which i prob will). Baring in mind the place is currently worth probably 60k more than i paid for it...
Any help would be greatly appreciated.
Thanks all
Jom
Apologies for asking this question again, as I'm sure it's been answered lots of times, but I can't seem to find the answer...
My scenario:
I currently have 2 IPs with no PPOR. I am renting with a friend (not in either of my places) and a financial advisor has told me that I could be smart about my investments and convert one of my IPs into an PPOR, so that i can take advantage of the 6 year CGT free rule.
This is an opportune time, as the tenant in the property has just moved out.
I have owned the property for 4 years, and it has been tenanted since day one. I have never lived there previously.
I understand that to take advantage of the 6 year rule, I need move into it for a certain period of time. Then at some stage down the track I could move out and then rent it out again, which would thereby allow me to claim the CGT exemption from any gain from then over the next 6 years.
I understand the principal, but want to make sure i do it all legally of course. So I have questions I'm hoping someone can share the answer to?
1) For what period would I be required to live in the house before moving out again?
2) At what point do i need to get a valuation or valuations done? Which presumably i need to do, as down the track i will need to have a figure that the property was worth, above which CGT should not apply (assuming i sell it within 6 years, which i prob will). Baring in mind the place is currently worth probably 60k more than i paid for it...
Any help would be greatly appreciated.
Thanks all
Jom