Hi All
I value all of the opinions & advice shared on this forum so I am interested in getting some thoughts on this.
My fiance & I are both 24 we have a PPOR that we have lived in for about 3.5 years (purchased 250k, loan now 210k) We have completed some renovations property was valued Dec 2009 at 320k. It is a good little place (2 bedroom) but is starting to get a little bit small for us.
In Dec 2009 we purchased our first IP for 240k which is a 2 bedroom unit built in 1990. We have had a great tenant in there since at $275/week.
My parents PPOR is valued at 500k with a 250k loan- it's a large family home.
My parents currently spend more & more time away traveling & at a coastal holiday town which is about 1 hr from both of our current homes. They currently have a small on site self contained cabin they spend lots of time at there but can't live there forever.
Currently there is a place for sale at the holiday town- it's a big 3 bedroom, 2 bathroom unit with courtyard, shed etc. It's on the market for 380k but the agent suggested the current owners need to sell & would probably accept 350-360k.
We are currently working out the best way for either my parents or my fiance & I to purchase this property- & for my parents to live in it & us move in to their current PPOR.
It is a bit confusing but we are thinking about
-My fiance & I purchasing the property as an IP & renting it to my parents (for market value)
- We would turn our PPOR into an IP & put tenants in (would probably get $280/week, good location close to uni & hospital)
-My fiance & I would rent my parents home from them (market value) & it would be an IP for them.
This would just allow my parents to have the benefits of possible tax savings with their current PPOR becoming an IP & would also allow us to essentially have our PPOR as an IP, the new place as an IP as well as our IP purchased in 2009.
It would also allow us to have more room then we currently have.
So ultimately we would be renting each others houses to each other & our current PPOR being an investment property too.
Sorry if this seems really confusing i am just hoping that people may share some thoughts/ideas about this & if you think it would or wouldn't work out.
We have just been discussing it & thought this would offer the best tax options for all of us.
We did think about my parents just purchasing the new place in the holiday place on their own & just renting their current PPOR to us & this is still an option
We are keen to ensure this is all legitimate too & are not doing anything that could be seen as not right.
I appreciate any help on this
Thanks
I value all of the opinions & advice shared on this forum so I am interested in getting some thoughts on this.
My fiance & I are both 24 we have a PPOR that we have lived in for about 3.5 years (purchased 250k, loan now 210k) We have completed some renovations property was valued Dec 2009 at 320k. It is a good little place (2 bedroom) but is starting to get a little bit small for us.
In Dec 2009 we purchased our first IP for 240k which is a 2 bedroom unit built in 1990. We have had a great tenant in there since at $275/week.
My parents PPOR is valued at 500k with a 250k loan- it's a large family home.
My parents currently spend more & more time away traveling & at a coastal holiday town which is about 1 hr from both of our current homes. They currently have a small on site self contained cabin they spend lots of time at there but can't live there forever.
Currently there is a place for sale at the holiday town- it's a big 3 bedroom, 2 bathroom unit with courtyard, shed etc. It's on the market for 380k but the agent suggested the current owners need to sell & would probably accept 350-360k.
We are currently working out the best way for either my parents or my fiance & I to purchase this property- & for my parents to live in it & us move in to their current PPOR.
It is a bit confusing but we are thinking about
-My fiance & I purchasing the property as an IP & renting it to my parents (for market value)
- We would turn our PPOR into an IP & put tenants in (would probably get $280/week, good location close to uni & hospital)
-My fiance & I would rent my parents home from them (market value) & it would be an IP for them.
This would just allow my parents to have the benefits of possible tax savings with their current PPOR becoming an IP & would also allow us to essentially have our PPOR as an IP, the new place as an IP as well as our IP purchased in 2009.
It would also allow us to have more room then we currently have.
So ultimately we would be renting each others houses to each other & our current PPOR being an investment property too.
Sorry if this seems really confusing i am just hoping that people may share some thoughts/ideas about this & if you think it would or wouldn't work out.
We have just been discussing it & thought this would offer the best tax options for all of us.
We did think about my parents just purchasing the new place in the holiday place on their own & just renting their current PPOR to us & this is still an option
We are keen to ensure this is all legitimate too & are not doing anything that could be seen as not right.
I appreciate any help on this
Thanks