I have a friend whose husband is keen on selling their house (Mansfield). It is in the catchment for a good school, so a sought after area and it will sell well. I think they should hold it unless they really "need" to sell though as prices are rising.
With a $150K mortgage, I think they could rent their current PPOR for about $550 per week.
He is keen on buying a "worst house in good street" house, do it up whilst living there, sell and make some money. If they do this a couple of times they can set themselves up well - both in mid 40s, youngest in final year of school. He is a sparkie but has let his licence lapse as he isn't currently "on the tools". Can he be an owner/builder?
With regards to the six year rule, would they be better to keep and rent their current PPOR (get a valuation before moving out), and then decide which to sell once they know the numbers on the "new" reno, how much profit they would make on each one, before deciding which to assign as PPOR?
I'm not sure of the rules for the six year absence or the circumstances under which they can own two houses, but not nominate which is their PPOR until time to sell one or the other.
They would be buying for around $500K with intention of spending say $100K renovating in the hope of making some profit. If they move in, that profit could be tax free, cheaper stamp duty, but big loan with no tax concessions.
If they stay in their current PPOR, the new IP will have a big tax deductible loan on what they buy as an IP, but they pay higher stamp duty and will pay capital gains tax on any profit they make.
Could they buy a new place, move in for twelve (?) months whilst renovating it, move back to their old PPOR and rent out the newly renovated house which now becomes an IP, and has the big loan which then becomes tax deductible?
Any ideas of which way they should go with this?
With a $150K mortgage, I think they could rent their current PPOR for about $550 per week.
He is keen on buying a "worst house in good street" house, do it up whilst living there, sell and make some money. If they do this a couple of times they can set themselves up well - both in mid 40s, youngest in final year of school. He is a sparkie but has let his licence lapse as he isn't currently "on the tools". Can he be an owner/builder?
With regards to the six year rule, would they be better to keep and rent their current PPOR (get a valuation before moving out), and then decide which to sell once they know the numbers on the "new" reno, how much profit they would make on each one, before deciding which to assign as PPOR?
I'm not sure of the rules for the six year absence or the circumstances under which they can own two houses, but not nominate which is their PPOR until time to sell one or the other.
They would be buying for around $500K with intention of spending say $100K renovating in the hope of making some profit. If they move in, that profit could be tax free, cheaper stamp duty, but big loan with no tax concessions.
If they stay in their current PPOR, the new IP will have a big tax deductible loan on what they buy as an IP, but they pay higher stamp duty and will pay capital gains tax on any profit they make.
Could they buy a new place, move in for twelve (?) months whilst renovating it, move back to their old PPOR and rent out the newly renovated house which now becomes an IP, and has the big loan which then becomes tax deductible?
Any ideas of which way they should go with this?