PPR BECOMING A RENTAL PROPERTY QUESTION.

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?

 

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

 

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.

 

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

 

from a CGT pov there is no minimum time.

 

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

 

Nope.