We have been talking about building a new house which we would have as an IP for the first 12 months. After this initial 12 months we would move into our new house.
Our current PPOR which is fully paid for could be be converted to an IP and we move back in before the sixth year as per the ato six year rule. We would want to keep this house as our PPOR because it would have the most capital gain. The rent of course would be fully taxable and no tax relief I presume.
Is this a good plan financially or is it better just to sell our PPOR and move into our new house? If we did this we would put the proceeds of the sale into an offset account against the loan for the new house.
Our current PPOR which is fully paid for could be be converted to an IP and we move back in before the sixth year as per the ato six year rule. We would want to keep this house as our PPOR because it would have the most capital gain. The rent of course would be fully taxable and no tax relief I presume.
Is this a good plan financially or is it better just to sell our PPOR and move into our new house? If we did this we would put the proceeds of the sale into an offset account against the loan for the new house.