what do i need to do to turn ppor into IP

[streetie]

i bought my apartment over a year ago, and I am about to move out shortly.
I have renovated it in that time from an original 1960's inside to a fairly modern ,open spaced and comfortable apartment.

what things do i need to before moving out?

do i need to get a scrapping/depreciation schedule made up for my future tax retuns, and a new bank evaluation , so I only pay capital gains tax on what i bought it for not what its worth now.
is that correct?? im a bit unsure.

and will my bank come out and do it for free?

thank you.

 

[Jamie M]

If the loan isn't set up as interest only, it might be an idea to do so. Do you plan on purchasing another PPOR at some point or do you have any non-deductible debt that can be knocked on the head?

Get a valuation done so you can work out future CGT if/when you sell. Some banks allow upfront vals without an application being submitted.

Also get a depreciation schedule done up.

Cheers

Jamie

 

[LisaParker]

Hi Streetie,

You will probably want to have a depreciation schedule done, yes. However the scrapping report is what is done prior to a renovation and it appears as though you have already done that.

If you are not going to move into another home which will claim to be your PPOR, you will likely be exempt from any CGT for your current property for up to the next 6 years. (speak with your accountant about this).

A bank can conduct a valuation, often free of charge if you are refinancing. Alternatively you can order and pay for one yourself ($300-$550).

Depending on your next move/step, will depend if there are other things you may wish to do before turning your PPOR into an IP. (From a financing perspective)

Good luck with your move,
Regards Lisa

 

[Rolf Latham]

so I only pay capital gains tax on what i bought it for not what its worth now.
is that correct??.

Hiya

the higher your CURRENT PPOR val, the LOWER the CGT component will be if you do ever sell............

Tip, get a couple of valuations if it doesnt fit.


CBA are doing client ordered vals at 99 bucks for the moment.

ta
rolf

 

[wylie]

CBA are doing client ordered vals at 99 bucks for the moment.

I imagine they only will do these for CBA clients?

 

[Rolf Latham]

I imagine they only will do these for CBA clients?

If you have an intention to refinance to CBA then thats fine

ta
rolf

 

[Shaneelastic]

You're all forgetting the most important part.

Put a for lease sign up

 

[Jamie M]

You're all forgetting the most important part.

Put a for lease sign up

Oh yeah.....and advertise the property

Cheers

Jamie