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PPR BECOMING A RENTAL PROPERTY QUESTION.

Discussion in 'General Property Chat' started by Brits, 1st Feb, 2016.

  1. Brits

    Brits New Member

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    Geelong
    My friend is buying a house which he is able to buy as his P.P.R as he currently owns no other property. He intends to live in it for a short while then rent it out. The property is in Victoria. Is there a minimum time that he must actually live in it in before renting it for it to be considered his P.P.R?
     
  2. Eugene82

    Eugene82 Active Member

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    make sure it's IO and max leverage with the rest of the money in offset account. Or even better read some posts by @terryw for structuring loans correctly. Otherwise your friend could loose a lot of future deductions
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It's 12 months in Vic.

    And as mentioned, loan structure is going to be important for your friend, make sure he gets good advice.
     
  4. Big Will

    Big Will Well-Known Member

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    http://www.sro.vic.gov.au/first-home-owner

    extract;
    You (or at least one applicant) must intend to live in the home as your PPR for at least 12 months, commencing within 12 months of settlement or completion of construction
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    from a CGT pov there is no minimum time.
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    Didn't it used to be 6 months for cgt purposes?
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Nope.