Hi all,
Keen follower of SS, first post!
Quick description of our situation.
Have a PPOR apartment in Sydney which we bought in '09.
Rented it out for 2 years whilst we were overseas but back living in it.
Have built up some equity and refinanced recently in order to begin a property investment strategy.
Have done a heap of reading and am deep in the analysis paralysis stage!
The plan is:
- Rent out our current PPOR - should be CF neutral or slightly negative.
- Buy a IP (house or townhouse) and rent it out (not sure where yet, Bris Vegas, Central Coast, Wollongong or Radelaide)
- Rent an apartment in Sydney to live in.
- Wait for CG and repeat.
Overall strategy is to buy IP's over the next 10 -15 years, whilst continuing in our jobs. Able to do small reno's or value adds on IP's with focus on CG.
Any CF would be a bonus.
My questions:
- Will the interest on our current PPOR (soon to be first IP) be tax deductible?
- What implications will this have in terms of CGT?
- To avoid the CGT, are we better off selling our current apartment (taking profit) and buying an IP (or two) with the sole purpose of the loan being investment?
Any advice is appreciated.
Thanks
Keen follower of SS, first post!
Quick description of our situation.
Have a PPOR apartment in Sydney which we bought in '09.
Rented it out for 2 years whilst we were overseas but back living in it.
Have built up some equity and refinanced recently in order to begin a property investment strategy.
Have done a heap of reading and am deep in the analysis paralysis stage!
The plan is:
- Rent out our current PPOR - should be CF neutral or slightly negative.
- Buy a IP (house or townhouse) and rent it out (not sure where yet, Bris Vegas, Central Coast, Wollongong or Radelaide)
- Rent an apartment in Sydney to live in.
- Wait for CG and repeat.
Overall strategy is to buy IP's over the next 10 -15 years, whilst continuing in our jobs. Able to do small reno's or value adds on IP's with focus on CG.
Any CF would be a bonus.
My questions:
- Will the interest on our current PPOR (soon to be first IP) be tax deductible?
- What implications will this have in terms of CGT?
- To avoid the CGT, are we better off selling our current apartment (taking profit) and buying an IP (or two) with the sole purpose of the loan being investment?
Any advice is appreciated.
Thanks