renting out my current home and renting another?

hi
im shane and i have a question. id like to rent out my property an rent another,or if possible buy another.i have owned my home for at least 6 mths,will i have to pay capital gain tax if i decide to do so?please note also that i originally brought the property from family at a below value cost.the property was valued at $310,000,an i purchased it for $281,000.

 

Shane, the strategy of renting out the property you own, and renting another to live in can be a good way to go. Just do the numbers about affordability, tax concessions etc. There is plenty of info on this site and on the Somersoft forum as well.
You are only liable for Capital Gains Tax if you sell.

 

Shane

You could rent it out for 6 years and have no CGT implications
but remember you only get exemption on 1 property so if you live in another property renting, that's fine but if you buy a 2nd property & live in it you can only claim the CGT exemption for 1 of the 2 properties.

I hope it makes sense and here is some more info

Moving on? Remember the six year rule for CGT

 

enting out my current home and renting another?

Hi
thank you very much for your info it has been very helpful.also which way would be better to go renting my house out privately or go through a real estate? What would be the difference if i did an how much roughly would i have to outlay to the real estate?any info will be very helpful thank you.

 

I'd use a property manager
Standard fee is 6-7% and they take a week's rent for finding you a tenant, advertising, doing the usual checks etc