Hi everyone,
This is my first post however I've spent many months absorbing the wealth of info that somersoft offers. There's so much to digest! Now that I'm getting into the property market I might be able to give back and contribute to discussions in the future.
Anyway, my wife and I have signed a contract on a house in Annerley, Brisbane and we settle in a couple of weeks. It's a circa 1920's qlder on a 780sqm corner block that's liveable but it looking a bit tired. Our initial plan for is to hold onto it for a while and down the track do some renovations (my dad's a builder).
As my wife is working in Caboolture this year and hates commuting (it's a 1hr drive each way to Annerley), we thought we'd initially rent it out for the first year and then move into it the following year when she will be working close to the city. This plan seemed good until the thought of capital gains tax raised it's ugly head and got us thinking what our other options are.
I guess I'm wanting to find out some of the rules to establishing a ppor. Is it possible to buy the property at the end of January, leave it vacant/start doing some work to it and move into into November or December. Would we be able to establish it as a ppor or would the time frame be too long between purchasing and moving in? Obviously if this was possible, we'd have to crunch some numbers and see whether it's feasible.
We bought it for $605k and as it is now, we'd only expect to get $400/week rent. As such, we didn't buy it as an investment property. But with a longer term view. I'd like to think we'll stay in it for a long time, however as were starting a family, we'll eventually have to extend or move to something bigger and if we can avoid getting lumped with a big tax, that'd be great!
I know we need to see our accountant for professional advice, but I thought I'd seek advice from the knowledgeable people here before hand. I hope these ramblings make sense!
Cheers,
lenny
This is my first post however I've spent many months absorbing the wealth of info that somersoft offers. There's so much to digest! Now that I'm getting into the property market I might be able to give back and contribute to discussions in the future.
Anyway, my wife and I have signed a contract on a house in Annerley, Brisbane and we settle in a couple of weeks. It's a circa 1920's qlder on a 780sqm corner block that's liveable but it looking a bit tired. Our initial plan for is to hold onto it for a while and down the track do some renovations (my dad's a builder).
As my wife is working in Caboolture this year and hates commuting (it's a 1hr drive each way to Annerley), we thought we'd initially rent it out for the first year and then move into it the following year when she will be working close to the city. This plan seemed good until the thought of capital gains tax raised it's ugly head and got us thinking what our other options are.
I guess I'm wanting to find out some of the rules to establishing a ppor. Is it possible to buy the property at the end of January, leave it vacant/start doing some work to it and move into into November or December. Would we be able to establish it as a ppor or would the time frame be too long between purchasing and moving in? Obviously if this was possible, we'd have to crunch some numbers and see whether it's feasible.
We bought it for $605k and as it is now, we'd only expect to get $400/week rent. As such, we didn't buy it as an investment property. But with a longer term view. I'd like to think we'll stay in it for a long time, however as were starting a family, we'll eventually have to extend or move to something bigger and if we can avoid getting lumped with a big tax, that'd be great!
I know we need to see our accountant for professional advice, but I thought I'd seek advice from the knowledgeable people here before hand. I hope these ramblings make sense!
Cheers,
lenny
