Renovate PPOR

Discussion in 'Investment Strategy' started by Bellecard, 25th Jun, 2021.

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  1. Bellecard

    Bellecard Member

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    1st Mar, 2021
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    Hi,

    We’re about to purchase a property to renovate. It will be counted as our main residence but as we may attempt to resell in a few months time, I’d like to know how long we have to reside there before we will be exempt from CGT? If we decide to rent whilst renovating does the home still count as a main residence or is it from when you first occupy it?
     
    Bellecard, 25th Jun, 2021
    #1
  2. Tony Xia

    Tony Xia Structured Loan Advisor Business Member

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    Renting it out means it's an investment. Thus CGT would be applicable. Unless you're renting it out under the table.
     
    Tony Xia, 25th Jun, 2021
    #2
  3. Bellecard

    Bellecard Member

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    Sorry, I wasn’t very clear. As in we would be staying in rent for a short duration of time until we’re done with Reno’s.
     
    Bellecard, 25th Jun, 2021
    #3
  4. ParraEels

    ParraEels Well-Known Member

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    I think you have 6 months time to move in. If sale within 1st 12 months than exemption may not apply.

    Not sure you could recoup the money you spend if you sell in few months.

    (1) purchase price + lmi + stamp duty + renovation cost + cost of renting while renovating + selling agents fee + removalist cost twice.

    May breakeven or not. Stampduty on $1m home is $50,000, it is huge cost
     
    ParraEels, 21st Jul, 2021
    #4
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