boarders in PPOR

hi guys,

i am building my first house and hope to live in it with my girlfriend and have a couple of mates rent rooms off me and divide the bills between us if i am able to being a FHOG applicant

i have just read in jan somers 'building wealth through investment property' that i can claim interest on my loan, depreciation etc by how many boarders i have

so if i, the owner, lives there, with my girlfriend, a boarder, and 2 mates, boarders, i can claim 3/4 of interest and depreciation etc.

just wondering if this rule is still around, as i know that book was written quite a while ago

anyone who can shed some more light on this please do so, and know if i can do this being a FHOG recipient

thanks in advance
 
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By doing this you will be liable for CGT when you sell. Best if you are taking in boarders to NOT declare the interest and expenses.
 
I had to do this after my divorce and "household expenses" is the way I handle it. Land Tax is seriously high here and I'd be living here as well as my "tenants" anyway so I dont worry about deductions. I would have lost my house if I hadnt done this.
 
Josh, I have to agree with everyone above.
If your cash flow can get you by don't look to claim your interest expenses.
The ability to retain your 100% CGT exemption is much more valuable to you in the long run. If you need the deduction to get by then that's a different story but I would be very reluctant to do it.

Gools
 
thanks guys

i dont need the deduction to get by, but of course it would be handy

i didnt think about the FHOG, which i am recieving, may be something ill have to look into

i know it makes me vulnerable to CGT if i decide to sell, but the idea is that i will rent it out within 2 years anyway, as i want to move closer to city, i will not be staying in this house too long. i dont plan on ever selling, but i cant predict the future

thanks guys
 
thanks guys

i dont need the deduction to get by, but of course it would be handy

i didnt think about the FHOG, which i am recieving, may be something ill have to look into

i know it makes me vulnerable to CGT if i decide to sell, but the idea is that i will rent it out within 2 years anyway, as i want to move closer to city, i will not be staying in this house too long. i dont plan on ever selling, but i cant predict the future

thanks guys

Another tip for you.

You have posted what you are doing/ thinking about doing on the world wide web.

You have full contact details and we know where you live.

Just be careful what you post, its very easy for any organisation to do a seacrh on you, hey the first thing i would do if i was investigating you for say fhog fraud etc, would be google you, your facebook profile will come up, your posts on this forum will come up etc;
 
thanks mate, i am looking into what i am able to do, havnt done anything yet as the house hasnt even started

its not my intention on doing anything illegal, ill be looking into it more, just thought this was a good place to get some initial feedback on the topic

just read it this morning and wondering if its something i could do
 
good onya for thinking outsid ethe square
the fhog is for first home buyers, any interest expense claimed in the first 12 months will register with the ATO and feed back to the government agency and state revenue offices.
You must live in it as a ppor for 6 months within the first 12, so dont go claiming a full years interest.
 
well i will be living in it

so technically if anyone else can claim boarders i should be able to aswell?

not sure i will call the ATO to check that this is legit, but it is something id like to do if possible

thanks for your feedback guys
 
just rang the SRO and the ATO, neither of them have a problem with it

so now all i need to do is figure out the sums and see if its a viable option

thanks guys
 
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