advice for a newbie

[sk71]

Hi

I am about to become a landlord rather unexpectedly (got a job offer elsewhere). I have been reading these forums for quite some time but am still a bit confused in some areas. The property management stuff I am Ok with but the tax stuff I am finding very confusing.

Is there anywhere that has a nice clear outline of what I need to do to ensure I have all the right financial stuff for tax purposes. I have a vague idea of depreciation schedules but am unsure of when to get this done, and also valuation for CGT purposes. Yep really not quite sure what I am talking about!!

Any help appreciated.

 

[Pa1nter]

So you are saying you are going to rent out your PPOR?
IF that's right I would get a valuation done on the property and keep it in your files,(This is probably the most important)
Find a real estate agent to manage your property,they will give you a price they believe they can get for it or you can insist on a price yourself.

Pack your stuff ,clean up and move on.

Remember you have 6 years that you can live away before you will have to pay capital gains(If you don't buy another PPOR) when you sell,
If you never sell you will never pay Capital gains tax on it.

Any rents you receive less real estate fees,rates,water,interest on loan,etc will have to be added to your income.Unless you own the house outright,this will normally just equal out anyway.

 

[Jamie M]

Hi sk71

Do you intend to ever move back into the property? Will you own a PPOR during the time your current property is an IP? Do you have any non-deductible debt such as personal loans, credit cards?

I assume your current loan is set up as principle and interest? I ask the questions above to get an idea of whether you may be better off converting the repayments to interest only instead.

Cheers

Jamie

 

[sk71]

Thanks for that. I am really not sure if I will move back as I am a rather impulsive gypsy type!!!

I have a principle and interest loan that is fixed for 2 more years and I do have a little bit of credit card debt.

Do I need a depreciation schedule??

 

[Propertunity]

Yes you need a depreciation schedule if you want to claim a tax deduction.

 

[sk71]

Thanks for that - certainly what I needed to know. I really appreciate it.