Making fully owned PPOR into IP??

[Lilli]

My parents in law own their PPOR in full. Are there any options for them in order to make their PPOR an IP so that they can rent elsewhere for a year or so? The property is only in his name and not in his wifes. I have heard people mention about selling to your spouse, how does this work and is this an option here?

 

[Francesca Chaki]

Hi Lilli

Because the property is owned outright they wont have any tax deductions and rental income will be taxed.

It doesnt make alot of sense for them to rent when their house is paid for.

If they are looking at building a portfolio, maybe they should consider selling their PPROR using that money divided amongst 2-3 IP and renting somewhere else. Just a thought.