Hi,
Wife and I just purchased our first unit, will be living in as our PPOR, settlement around one month away.
I believe I have heard that if you live in as a PPOR for minimum 6 months, then convert to a rental property (and go rent yourself somewhere else), then you can still pay 0% on CGT on your property for 5 or 6 years.
1) Is this correct?
2) What are the advantages of such a strategy?
3) I assume that obviously you can't claim a deduction in the case the rent doesn't cover the interest - or you could but you would lose the PPOR CGT exemption?
4) What are the disadvantages of such a strategy?
5) What alternatives would anyone suggest?
Thanks alot for your help.
SYDB
Wife and I just purchased our first unit, will be living in as our PPOR, settlement around one month away.
I believe I have heard that if you live in as a PPOR for minimum 6 months, then convert to a rental property (and go rent yourself somewhere else), then you can still pay 0% on CGT on your property for 5 or 6 years.
1) Is this correct?
2) What are the advantages of such a strategy?
3) I assume that obviously you can't claim a deduction in the case the rent doesn't cover the interest - or you could but you would lose the PPOR CGT exemption?
4) What are the disadvantages of such a strategy?
5) What alternatives would anyone suggest?
Thanks alot for your help.
SYDB