Hit my goal of 2mil+ portfolio at 28 years old!

Sure my broker is Michael Xia from mortgage channel

 

You've done well. Congratulations.

 

Is the latter a gym owner with slow moving clients?

 

Thank you

 

Haha I like that one, I'll use it

 

Do you think you will plan for a PPOR in the mix at some point or are you happy to rentvest?

 

Actually in the middle of renovating one of my properties to be my PPOR for a little bit then it will most likely become a rental again, this will also help with cap tax at eventual selling point.

 

Did you get a valuation before you started?

 

Would a refinance valuation cover this that was done 2 years ago, property hasn't moved in value from the last 2 year's, or should i of got a full privates valuation prior to starts of renovations or post renovation?

 

Well done Frank. Terrific to build such a solid base at a young age. As Paul has explained the portfolio will keep growing in value over time and you'll be able to access the equity to add more.

 

If you were going to move into it as a PPOR, I would have got a valuation prior to doing any reno's. That way, any gain moving forward would be CGT free, assuming it is still a PPOR on selling.

Refinancing is a different thing altogether. Speak to a broker about that.

 

How could this be the case?

 

Oh really, I was under the impression it didn't matter as the CGT will be proportionated and divided over the years it was a rental and then years after move in

Example if it was a rental for 5 years then moved in for 5 years , the capital gain tax was 100k, I would only pay 50%

I believe that what your referring too would be relevant if it was a PPOR first then became a rental

 

Thank you

 

Thats right.

Tax Tip 233: The 6 year rule when moving into an IP and then out again Tax Tip 233: The 6 year rule when moving into an IP and then out again

 

Whilst living in it and plan to be using the 6 year rule, considering I'm doing a renovation right now, I can't make any tax claims on property until it becomes a income producing property again right?

 

No, and be careful as if any fixtures and fittings are not new when you move out you cannot claim them. e.g. if you put in an airconditioner.

 

Thank you, okay right I must replace same with same no additional items will be tax written

 

I wasn't saying or implying that. It doesn't matter if you replace the airconditioner with the exact same one or not, if you do it while living there you will not be able to claim the depreciation once you move out.

 

Oh okay, so then I must not state I'm living at the property untill I've completed renovations ?