This is a question on behalf of a relative. Any advice greatly appreciated thanks!!
Situation: 2 acre property valued at $1.2m and currently rented $600pw. Current zoning is rural. Our current residence is our PPOR. It will be sold to finance the new property.
Future: Property will be rezoned around the end of 2011 to medium density residential housing. We are working on this doubling the value of the property at a minimum.
Problem: We would like to continue renting out this acreage property up to, or close to, the date of rezoning. We will be renting in our current area until then. We will claim the acreage property as our new PPOR however we are concerned when the property is rezoned (and thereby dramatically increasing its value) that we would be subject to CGT on the new increased value. We are after a crystal ball
, and would like some advice on at what point, we should plan to advise the tenants to vacate, to stop it being an investment property, making it subject to CGT on the increased release value. Any suggestion on what to do, to minimize CGT would be welcomed.
Thanks!
Situation: 2 acre property valued at $1.2m and currently rented $600pw. Current zoning is rural. Our current residence is our PPOR. It will be sold to finance the new property.
Future: Property will be rezoned around the end of 2011 to medium density residential housing. We are working on this doubling the value of the property at a minimum.
Problem: We would like to continue renting out this acreage property up to, or close to, the date of rezoning. We will be renting in our current area until then. We will claim the acreage property as our new PPOR however we are concerned when the property is rezoned (and thereby dramatically increasing its value) that we would be subject to CGT on the new increased value. We are after a crystal ball
, and would like some advice on at what point, we should plan to advise the tenants to vacate, to stop it being an investment property, making it subject to CGT on the increased release value. Any suggestion on what to do, to minimize CGT would be welcomed.Thanks!
