Hi Everybody,
I am seeking some advice in regards to which property we should be claiming our PPOR excemption on.
We have a property in Brisbane (House / Outer Suburbs) that is currently being claimed as our PPOR but is currently an IP due to relocation to Melbourne. We lived in this property for one year (2006/07) in order to qualify for the FHOG.
We are in the process of purchasing a property here in Melbourne which we intend to live in and which at some point may also become an IP. The property is an apartment and located in North Melbourne.
I'm thinking that as part of our risk management strategy whilst interest rates are rising and uncertainty still remains around the state of the economy that we do not claim the PPOR excemption on our new Melbourne purchase even though we will be living in it.
Reason being is that we have no intention of moving back to Brisbane or selling but if circumstances arose whereby we would need to sell one of the properties, the Brisbane property would be the one to be sold. Am I correct in my logic in that because we haven't claimed our Melbourne property as our PPOR the Brisbane property would not be subject to CGT as long as we sold within six years of it becoming an IP?
What would be the implications on the Melbourne property for us if we don't nominate it as our PPOR? Can it be nominated as our PPOR at a later date?
What are peoples thoughts on this as a fallback strategy? We are still in the accumulation phase and thought it be wise to have an exit strategy in place if required.
Feedback and Thoughts appreciated.
Thanks...
I am seeking some advice in regards to which property we should be claiming our PPOR excemption on.
We have a property in Brisbane (House / Outer Suburbs) that is currently being claimed as our PPOR but is currently an IP due to relocation to Melbourne. We lived in this property for one year (2006/07) in order to qualify for the FHOG.
We are in the process of purchasing a property here in Melbourne which we intend to live in and which at some point may also become an IP. The property is an apartment and located in North Melbourne.
I'm thinking that as part of our risk management strategy whilst interest rates are rising and uncertainty still remains around the state of the economy that we do not claim the PPOR excemption on our new Melbourne purchase even though we will be living in it.
Reason being is that we have no intention of moving back to Brisbane or selling but if circumstances arose whereby we would need to sell one of the properties, the Brisbane property would be the one to be sold. Am I correct in my logic in that because we haven't claimed our Melbourne property as our PPOR the Brisbane property would not be subject to CGT as long as we sold within six years of it becoming an IP?
What would be the implications on the Melbourne property for us if we don't nominate it as our PPOR? Can it be nominated as our PPOR at a later date?
What are peoples thoughts on this as a fallback strategy? We are still in the accumulation phase and thought it be wise to have an exit strategy in place if required.
Feedback and Thoughts appreciated.
Thanks...