Hi all I am currently renting in Barangaroo (Sydney) and the lease expires in May 2018. I am looking to buy a PPoR over the next few months, if something I like comes up. I obviously am not basing purchasing decisions on when the lease expires, there is an interim period where I will have essentially two places to live... i.e. there is a mismatch between settlement and lease expiry. I was thinking about treating the prospective PPoR as a short term investment via Air B & B and claim neg gearing until I move in next year. Hoping to get your views on my scenario. Much appreciated
Firstly, you can break your lease and move into your newly acquired PPOR if you need to. Secondly, if you are getting a PPOR loan (cheaper interest rate) and then treating it as an IP immediately upon settlement, you might run into trouble with the lender (if they find out). Thirdly, if you don't move into your PPOR first, before renting out, you will lose some of its CGT-free status.
I'd look more into if you can run your Barangaroo apartment you are leasing as a short term rental. I wouldn't do this without the owner's permission though. Doesn't have to be Airbnb you can find someone to take the lease on for the amount of months until your PPR settles. Breaking leases aren't as expensive as you'd think- it's very easy to find someone to take it over.
Airbnb attracts heat from your strata and council. If you can handle that, go for it, if not, best to not do airbnb, at least till state government form a solid position on airbnb.
