Hi guys
I'm on looking at developing IP2, which is on a 950m2 block near the city, in a few years time. The plan is to subdivide and build a small single storey on one side, and possibly a larger double storey home on the other side. I will rent the single storey out as an investment property indefinitely, however want to sell the home in the future to fund a future PPOR in Melbourne 10 years down the track. Of course I will be liable for CGT if I sell.
I am currently in Japan, and my job allows me to work from anywhere pretty much via the internet. I am thinking of moving back into the larger home after it has been completed and living there for 1 year - 1 1/2 years making it my PPOR during that time. After that, I will probably rent it out for 5 or 6 years and sell it before I am liable for CGT (given the 6 year period you can sell an IP if it was formerly a PPOR).
Does this sound feasible? I would rather move back to Perth for a year and keep any profits myself than give the government almost $100k in CGT (how selfish of me huh).
I am currently renting in Japan, but looking at building a house here in mid 2011 which will be my PPOR here. While I move back to Perth, I guess I will have to rent it out as you can't have two PPORs at the same time?
I have discussed this with my accountant and everything seems above board, just thought I'd get some advice from experts here who have done something similar. I know the place next to my parent's house was subdivided/developed, and the owner/builder moved into one side for a year before selling it, so I guess it will be a similar situation.
Thanks in advance.
J.
I'm on looking at developing IP2, which is on a 950m2 block near the city, in a few years time. The plan is to subdivide and build a small single storey on one side, and possibly a larger double storey home on the other side. I will rent the single storey out as an investment property indefinitely, however want to sell the home in the future to fund a future PPOR in Melbourne 10 years down the track. Of course I will be liable for CGT if I sell.
I am currently in Japan, and my job allows me to work from anywhere pretty much via the internet. I am thinking of moving back into the larger home after it has been completed and living there for 1 year - 1 1/2 years making it my PPOR during that time. After that, I will probably rent it out for 5 or 6 years and sell it before I am liable for CGT (given the 6 year period you can sell an IP if it was formerly a PPOR).
Does this sound feasible? I would rather move back to Perth for a year and keep any profits myself than give the government almost $100k in CGT (how selfish of me huh).
I am currently renting in Japan, but looking at building a house here in mid 2011 which will be my PPOR here. While I move back to Perth, I guess I will have to rent it out as you can't have two PPORs at the same time?
I have discussed this with my accountant and everything seems above board, just thought I'd get some advice from experts here who have done something similar. I know the place next to my parent's house was subdivided/developed, and the owner/builder moved into one side for a year before selling it, so I guess it will be a similar situation.
Thanks in advance.
J.