Looking for some help please :)

[siddant]

Hello Everyone,

I am looking to invest in a rural property that has 2 houses on site.

Its 20 acres in size.
House-1 is 4bedroom / 3 bathroom / 3 car park
House-2 is 3 bedroom + 1 study or bedroom / 1 bathroom / 1 carpark

Land wil be used equally and has 7 horse paddocks on it.

House-2 is currently rented out at 19000 per.annum

How will this be assessed for tax purposes.

will i be able to claim half of the stamp duty, half of the loan and half of the rates ?


Thanks in Advance.
Sidd.

 

[Scott No Mates]

Is house 1 a ppor?
How is the use of the paddocks going to be attributed? 7 paddocks/2?
What does the existing tenant get for their $19k?

 

[Jamie M]

Hi Sidd

Not directly related to your question but have you sorted out your finances? Large rural acreage with two dwellings isn't a vanilla deal.

Cheers

Jamie

 

[siddant]

Is house 1 a ppor?
How is the use of the paddocks going to be attributed? 7 paddocks/2?
What does the existing tenant get for their $19k?

Hello Scott,

all of the paddocks will be used by the rented house. thats how it is now.
they get the house they are living in and the use of paddocks and the gardens.

House 1 is PPOR.

Thanks
Sidd.

 

[siddant]

Hi Sidd

Not directly related to your question but have you sorted out your finances? Large rural acreage with two dwellings isn't a vanilla deal.

Cheers

Jamie

Hello Jamie,

Under control atm. Thanks for asking.

Sidd.

 

[Paul@PFI]

Hello Scott,

all of the paddocks will be used by the rented house. thats how it is now.
they get the house they are living in and the use of paddocks and the gardens.

House 1 is PPOR.

Thanks
Sidd.

You will need to apportion all the price paid between PPOR, Paddocks and IP. This same % would apply to duty etc etc...And loan interest etc A valuer or agent may have to assist since its not straight forward. If you try and overdo one it will harm the other. It should be very diligent. This % for each portion will be basis for CGT, deductions etc.