My wife and I sold or PPOR last year and are currently renting whilst searching for a new PPOR. We have 2 young kids, and earn a combined income of 137K a year, and have 230K in savings.
I really want to get into building/property development. I am currently a qualified plumber and will soon start studying to hopefully obtain my builders licence.
We are currently looking in the Newport (melb) area and are looking to spend 800-950K on our PPOR.
I figure I have 2 options~
Option 1: Spend 850-950K on a PPOR in Newport that can be subdivided and developed later down the track (say 2 or 3 years.)
Option 2: Buy a PPOR and an investment property in a cheaper nearby suburb (Altona or Altona North). So spend maybe 500k each property.
I would prefer option 1. as I would rather live in Newport and think I will make a bigger profit in the end, but I am unsure whether there are any Capital gains implications through developing your PPOR.
Like if I built on the back of a block but continued to use the same house as my PPOR, obviously the land of my PPOR is smaller and hence worth less than what I originally paid for it. So in the long rung do I lose part of my PPOR Capital Gains exemption?
Thanks. Hope this makes sense!
I really want to get into building/property development. I am currently a qualified plumber and will soon start studying to hopefully obtain my builders licence.
We are currently looking in the Newport (melb) area and are looking to spend 800-950K on our PPOR.
I figure I have 2 options~
Option 1: Spend 850-950K on a PPOR in Newport that can be subdivided and developed later down the track (say 2 or 3 years.)
Option 2: Buy a PPOR and an investment property in a cheaper nearby suburb (Altona or Altona North). So spend maybe 500k each property.
I would prefer option 1. as I would rather live in Newport and think I will make a bigger profit in the end, but I am unsure whether there are any Capital gains implications through developing your PPOR.
Like if I built on the back of a block but continued to use the same house as my PPOR, obviously the land of my PPOR is smaller and hence worth less than what I originally paid for it. So in the long rung do I lose part of my PPOR Capital Gains exemption?
Thanks. Hope this makes sense!