Hi all,
Long time lurker first time poster.
We are currently in a situation where we are looking at purchasing our second property (house) which we intend to rent out for a short period of time (3-5 years, maybe sooner) than move in as our PPOR.
Our current situation is that we live in our unit which we have been here since 2011. We currently have 150k remaining on our mortgage and $143k in our offset account.
We are looking at using the equity from our unit (320k) to purchase a house which is around the 850k mark. The potential rental income for the house is between 550-600 per week.
Our goal is to rent out the house for 3-5 years until we pay the remainding 150k on our mortgage on the unit. We would sell the unit, transfer the remainding money over to the house mortage and move in.
We are not sure if we should take out a P&I or IO loan on the house for the 3-5 year period? My current income is $81K gross per year.
Once miving into the house after 3-5 years, we would definately be there for atleast 10 years which over that period of time the house would be renovated/extended. Does anyone know what kind of CGT concession/exemption we would be up for?
Long time lurker first time poster.
We are currently in a situation where we are looking at purchasing our second property (house) which we intend to rent out for a short period of time (3-5 years, maybe sooner) than move in as our PPOR.
Our current situation is that we live in our unit which we have been here since 2011. We currently have 150k remaining on our mortgage and $143k in our offset account.
We are looking at using the equity from our unit (320k) to purchase a house which is around the 850k mark. The potential rental income for the house is between 550-600 per week.
Our goal is to rent out the house for 3-5 years until we pay the remainding 150k on our mortgage on the unit. We would sell the unit, transfer the remainding money over to the house mortage and move in.
We are not sure if we should take out a P&I or IO loan on the house for the 3-5 year period? My current income is $81K gross per year.
Once miving into the house after 3-5 years, we would definately be there for atleast 10 years which over that period of time the house would be renovated/extended. Does anyone know what kind of CGT concession/exemption we would be up for?