Buying to renovate and rent from family

[Adzo99]

Hi Guys I need some advice, I have an opportunity to purchase my parents holiday house and am looking for advice on finance and tax implications.

Basically my intentions are to renovate to rent and pull out the created equity to fund further investing.
I am looking at completing the renovations prior to buying the house to avoid holding costs during this time.

My questions are
How is my tax affected by completing the renovation prior to settlement?
Are there any benefits to renovating after settlement?
I'm assuming that all renovation costs will be put into the depreciation schedule for the property for capital allowance figures?
Should I have my solicitor start the buying process contracts before I begin the renovation?

I have refinanced another IP loan for the buying and renovation costs Is this increase to my IP loan still deductable whilst sitting in a separate offset account which currently offsets my PPOR.

Am I missing anything??

Thanks for your help and advice
Cheers Adam

 

[Terry_w]

My questions are
How is my tax affected by completing the renovation prior to settlement?
Are there any benefits to renovating after settlement?
I'm assuming that all renovation costs will be put into the depreciation schedule for the property for capital allowance figures?
Should I have my solicitor start the buying process contracts before I begin the renovation?

I have refinanced another IP loan for the buying and renovation costs Is this increase to my IP loan still deductable whilst sitting in a separate offset account which currently offsets my PPOR.

Am I missing anything??

Thanks for your help and advice
Cheers Adam

- You won't be able to claim as not your property
- less tax eventually for you, more for parents
- possible more deductions
- possibly
- depends
- no
- probably

answers in order.