Do I need conveyancer to change IP to owner occupied property?

Discussion in 'The Buying & Selling Process' started by Mars, 11th Jul, 2019.

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  1. Mars

    Mars Member

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    Hi,

    We had an investment property, we are thinking about changing it to owner occupied property in a few years.

    Do we need to get a conveyancer to change it? What do we need to consider before we makes the change?

    Look forward to hearing from you.

    Thank you,
     
    Mars, 11th Jul, 2019
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no
     
    Terry_w, 11th Jul, 2019
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  3. Mars

    Mars Member

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    thank you Terry. If I make the change on my own, how do I notify land tax authority, so they don't bill me for land tax?
     
    Mars, 11th Jul, 2019
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You can probably do that online.
     
    Terry_w, 11th Jul, 2019
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  5. Befuddled

    Befuddled Well-Known Member

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    In NSW you register your properties. When you get a land tax assessment check, and if it incorrectly states the now PPOR as an investment reach out to them to get the statement adjusted. Show proof (utilities bills etc) as required.

    Adelaide process may be similar
     
    Befuddled, 11th Jul, 2019
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  6. Mars

    Mars Member

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    thank you all
     
    Mars, 11th Jul, 2019
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  7. Mars

    Mars Member

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    sorry, another question.

    before I change to owner occupied, do I need to get the bank to value the property? So I can figure out the capital gain of the property? And pay the tax if I need to? As after I change to owner occupied, when I sell it, I don't need to pay for the tax.
     
    Mars, 11th Jul, 2019
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  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    a valuation is irrelevant if moving into an IP
     
    Terry_w, 11th Jul, 2019
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  9. Trainee

    Trainee Well-Known Member

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    Back up. Ask what happens when i move into an ip. All of your assumptions have been wrong so far.
     
    Trainee, 11th Jul, 2019
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  10. Mars

    Mars Member

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    can you please shed some lights, as I have no idea:(.
     
    Mars, 11th Jul, 2019
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  11. willair

    willair Well-Known Member Premium Member

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    If the same names are on the Title then I would say no,it may be different if only one name ..imho..
     
    willair, 11th Jul, 2019
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  12. Michael Mitchell

    Michael Mitchell Property Manager Business Member

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    1. Valuation at point(s) in time where use of premise changes from PPOR/IP so that when it is disposed of, CGT can be calculated etc
    2. Usually, local city council has different rateable values for PPOR and IP's, informing them when a change of use occurs is probably the right thing to do :rolleyes:
    3. Once a mortgage is in place, financiers generally won't micro-manage it until/unless refinancing is required or it is to be used as collateral for something else etc which triggers them "to look", in that regard, probably don't even need to let them know. Some get cranky when you get a loan with favourable conditions based on it being IP and then they later find our you're living in it, unlikely they'd ever try and get anything from you for that though; ignorance + apology in the first instance goes along way etc
     
    Michael Mitchell, 13th Jul, 2019
    #12