Primary Residence to Investment

Hi, looking for some quick guidance or links to information that helps with the process of moving from your primary residence into an investment property - then renting out the primary residence. Basically reversing the current situation.

Primary residence has been owned for 10+ years and Investment is coming up to 3 years - looking to make the change in a couple of years.

Are there links to certain paperwork that needs to be filled in or is this a pure accountant question?

Thanks in advance.

 

No paperwork needed. Nothing much to do other than rent it out.
You might want to organise a valuation for CGT and consider the land tax aspects. Interest on the loan might be deductible where the loan was used to buy the property or improve it.

 

Thanks for the quick response Terry, much appreciated.

So if I've understood:
- Get an evaluation of the current residence for CGT
- Land tax - where would I get that from - i'm in SA so possibly the the land titles office?
- the load part I'm pretty comfortable with

Sorry about the newbie questions but I'd like to get it right - so hopefully don't get stung on cost of decisions.

 

The first year will need to carefully consider the PERIOD of all expenses initially. I like to use insurance as an example. It may have been paid on 10 August for a year to 30 August. So that annual costs needs to consider the rented period and be apportioned. Therefater its all deductible when paid.

Other issues:
- land tax registration
- CGT valuation evidence IF its needed ? s118-192 doesnt always apply to force a costbase reset
- Depreciation schedule ? Dont assume that its not worth getting until a QS tells you.
- Do you have a CGT record ? eg in 8 years wll you remember the dates of the first rental etc ?
- Past LMI and borrowing expenses ? I often see this overlooked....... and

- Consider getting property tax advice Example if you have ever rented part of the dwelling or used it for a busienss then different outcomes may occur and knowing this will ensure correct records are kept.