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From: Ayesha Todd
Hi all,
We are trying to sell our PPOR (very long and tiring affair, 2 buyers falling through, another where 10 weeks after exchange they still didn't have finance so we had to rescind, very messy affair) anyway we have another buyer that has requested the following, what I wish to know, is if we accept 'rent' does this turn it into a IP and therefore we have to pay CGT on the property, and two, anything we should be wary off.
The scenario - Listed price $138 500, sale price $137 000. Buyer wishes to pay us $40K now, into our hand, then pay us 70% 'rent' till settlement in November when they will pay the balance of $97K.
Now we are thinking of working out the 'rent' amount and requesting that be added onto the sale price....(12 weeks x $130 = $1560) and so they pay us in advance on the deposit or at the end on settlement avoiding the problem of receiving rent on a PPOR, though then we run into a problem of paying extra commission to the RE.
I suppose my first question is will CGT be payable if we accept 'rent', if so how will this be worked out.
Second question, anything we should watch out for, after the last settlement fiasco we don't want to fall into trouble again.
Ayesha
Hi all,
We are trying to sell our PPOR (very long and tiring affair, 2 buyers falling through, another where 10 weeks after exchange they still didn't have finance so we had to rescind, very messy affair) anyway we have another buyer that has requested the following, what I wish to know, is if we accept 'rent' does this turn it into a IP and therefore we have to pay CGT on the property, and two, anything we should be wary off.
The scenario - Listed price $138 500, sale price $137 000. Buyer wishes to pay us $40K now, into our hand, then pay us 70% 'rent' till settlement in November when they will pay the balance of $97K.
Now we are thinking of working out the 'rent' amount and requesting that be added onto the sale price....(12 weeks x $130 = $1560) and so they pay us in advance on the deposit or at the end on settlement avoiding the problem of receiving rent on a PPOR, though then we run into a problem of paying extra commission to the RE.
I suppose my first question is will CGT be payable if we accept 'rent', if so how will this be worked out.
Second question, anything we should watch out for, after the last settlement fiasco we don't want to fall into trouble again.
Ayesha
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