How to convert my owner occupier property into investment property

Discussion in 'Property Experts' started by Ian fitzgerald, 3rd Oct, 2020.

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  1. Ian fitzgerald

    Ian fitzgerald Member

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    How can I convert my owner occupier to investment property? What are the costs and paperwork involved?
     
    Ian fitzgerald, 3rd Oct, 2020
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    do u have a loan on the property ?

    ta
    rolf
     
    Rolf Latham, 3rd Oct, 2020
    #2
  3. Ian fitzgerald

    Ian fitzgerald Member

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    Thanks Rolf, I haven't paid most of my owner occupier loan. I am after the process of conversion, and cost involved. (I am under Blacktown Council). Thank you!
     
    Ian fitzgerald, 3rd Oct, 2020
    #3
  4. Terry_w

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

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    step 1 Find a tenant
    step 2 rent it
    = investment property

    there are no costs or paperwork involved other than leases.
     
    Terry_w, 3rd Oct, 2020
    #4
    craigc and thatbum like this.
  5. Shogun

    Shogun Well-Known Member

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    Get it valued for Capital Gains tax purposes if your not going to make use of 6 year rule?
     
    Shogun, 3rd Oct, 2020
    #5
  6. Terry_w

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

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    Yes that might be a good idea.
     
    Terry_w, 3rd Oct, 2020
    #6
  7. Ian fitzgerald

    Ian fitzgerald Member

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    I'm planning to buy a New property as owner occupier. Do I need to update the Blacktown Council/banks. Thank you!
     
    Ian fitzgerald, 3rd Oct, 2020
    #7
  8. Terry_w

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

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    No. But you need to change your mailing address and you might be breaching loan agreement if you don't advise mortgagee
     
    Terry_w, 3rd Oct, 2020
    #8
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    convert loan to IO perhaps ?

    ta
    rolf
     
    Rolf Latham, 3rd Oct, 2020
    #9
  10. craigc

    craigc Well-Known Member

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    Shogun said: ↑
    Get it valued for Capital Gains tax purposes if your not going to make use of 6 year rule?
    Yes that might be a good idea.

    Would suggest you need to get the valuation whether intending to use the 6 year rule or not.
    The market value requirement likely applies either way (from limited facts given).
     
    craigc, 4th Oct, 2020
    #10
  11. skater

    skater Well-Known Member

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    I think you missed a step.

    Step 1) Move out
    Step 2) Find tenant
    Step 3) Collect rent.

    :D
     
    skater, 4th Oct, 2020
    #11
    craigc and Terry_w like this.
  12. Sunny8888

    Sunny8888 Active Member

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    What happens if I still live there but rent out the spare rooms ?
     
    Sunny8888, 5th Oct, 2020
    #12
  13. Terry_w

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

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    That is a broad question.
    Many things will happen, one major one would be the property will be subject to CGT.
     
    Terry_w, 5th Oct, 2020
    #13
  14. Sunny8888

    Sunny8888 Active Member

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    How will anyone know tho ?
     
    Sunny8888, 5th Oct, 2020
    #14
  15. Terry_w

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

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    An evidence trail?
     
    Terry_w, 5th Oct, 2020
    #15
  16. Sunny8888

    Sunny8888 Active Member

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    Also isnt it ok for 6 yrs ?
     
    Sunny8888, 5th Oct, 2020
    #16
  17. Sunny8888

    Sunny8888 Active Member

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    No lease, private rental ? Obviously cannot claim part interest paid then ..
     
    Sunny8888, 5th Oct, 2020
    #17
  18. Terry_w

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

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    Terry_w, 5th Oct, 2020
    #18
    Sunny8888 likes this.
  19. Terry_w

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

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    I can't help you commit fraud, but think from the tenant side...
     
    Terry_w, 5th Oct, 2020
    #19
  20. Trainee

    Trainee Well-Known Member

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    THAT’s your tax strategy?
     
    Trainee, 5th Oct, 2020
    #20
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