Hi all,
have a little dillema that i am unsure about (re-CGT)and thought this is the best place to find out. I purchased my first property (PPOR) 5 years ago and lived at the house until mid last year. I then moved home with my folks and rented it out whilst saving for another deposit. I then purchased another house in November 09 (settled Jan 29 2010). The new property is a renovation/extension and wont be finished until late 2010, so i continue to live with my folks until then. I have however been offered a job promotion that i will have to move away for and was hoping to purchase a new property in that town rather than renting (as it will be a permanent relocation) using money from the sale as a deposit for next property. The question is- Will i have to pay CGT on the first property (current IP) if i have not in fact lived in the second property (proposed PPOR)? Regardless of what happens i will be finishing the extension/renovation before even thinking of selling it and perhaps my partner may even live there until she can relocate her work later this year or early next year. I have a significant amount of equity in the first property i own and was hopefull of releasing that rather than the smaller amount that i will have in property 2. Both my partner and I are still in our 20's and dont want to make a silly mistake by selling the wrong property etc and making a dent in our potential investing strength in the future. We are both very new to IP's so its still a learning curve. Any help will be appreciated
Hope this makes sense- Reno
have a little dillema that i am unsure about (re-CGT)and thought this is the best place to find out. I purchased my first property (PPOR) 5 years ago and lived at the house until mid last year. I then moved home with my folks and rented it out whilst saving for another deposit. I then purchased another house in November 09 (settled Jan 29 2010). The new property is a renovation/extension and wont be finished until late 2010, so i continue to live with my folks until then. I have however been offered a job promotion that i will have to move away for and was hoping to purchase a new property in that town rather than renting (as it will be a permanent relocation) using money from the sale as a deposit for next property. The question is- Will i have to pay CGT on the first property (current IP) if i have not in fact lived in the second property (proposed PPOR)? Regardless of what happens i will be finishing the extension/renovation before even thinking of selling it and perhaps my partner may even live there until she can relocate her work later this year or early next year. I have a significant amount of equity in the first property i own and was hopefull of releasing that rather than the smaller amount that i will have in property 2. Both my partner and I are still in our 20's and dont want to make a silly mistake by selling the wrong property etc and making a dent in our potential investing strength in the future. We are both very new to IP's so its still a learning curve. Any help will be appreciated
Hope this makes sense- Reno