Hi, I am a big fan of SS. Long time reader and this is my first post so please bear with me.
I have three properties. Lets say they are A, B and C. A is my PPoR and B & C are NRAS Investment properties. I have borrowed equity from A (my PPoR) and used the funds as deposit for B & C. This has been working good so far.
Now I just signed a contract for another property, say prop D, which I would like to move into in 6-9 months time. The existing tenant on D has about 5 months lease left and after that I am planning to add another floor and move in. When I do that, ideally I would like to change my existing PPOR property A into an investment property and the new property D into PPoR.
Now my question is HOW do I go about it from tax perspective? Has anyone done something like this before?
a) Can I claim negative gearing on prop D until I start the building process?
b) How do I technically swap A with D as my PPOR? The simplest thing would be to sell A, take the money and run but it has a lot of potential and I would rather convert it into an investment property and improve it later on (may be a granny flat) to get some passive income going.
looking forward to your expert advise/direction (to reduce tax)
I have three properties. Lets say they are A, B and C. A is my PPoR and B & C are NRAS Investment properties. I have borrowed equity from A (my PPoR) and used the funds as deposit for B & C. This has been working good so far.
Now I just signed a contract for another property, say prop D, which I would like to move into in 6-9 months time. The existing tenant on D has about 5 months lease left and after that I am planning to add another floor and move in. When I do that, ideally I would like to change my existing PPOR property A into an investment property and the new property D into PPoR.
Now my question is HOW do I go about it from tax perspective? Has anyone done something like this before?
a) Can I claim negative gearing on prop D until I start the building process?
b) How do I technically swap A with D as my PPOR? The simplest thing would be to sell A, take the money and run but it has a lot of potential and I would rather convert it into an investment property and improve it later on (may be a granny flat) to get some passive income going.
looking forward to your expert advise/direction (to reduce tax)