structure old ppor for renting

looks like i'm unable to sell my old ppor currently as market is pretty slow in the price range and to drop it down to what they think will sell makes it not worth even thinking of selling, so i will be renting it out

what can i do now to structure it better for taxation purposes.?
i have removed all money from the offset and put against other house.
is it worth getting a valuation now to separate the CGT? or does that now work?

what else is there i can do?
i hadn't thought of what i needed to do in regards to renting out as i was hoping to sell.

whats the best way to pay for expenses for the now ip?

 

Get a depreciation schedule done on it to claim deductions

If the now IP has increased in value you can take out the equity in a separate split and use that to pay for some (not all) of the expenses on the now IP to maximise deductions.

 

Not much you can do with structure as it is already owned and borrowed for.

Who owns it and where is it located?

What is its value and

what is the loan outstanding secured against this and how much of that loan can be attributed to the purchase of the property?

Did you live in it since purchase?

 

In terms of getting it rent ready, get a property manager to go though the property and give you some opinions on maximising the rent. Ensure all external doors and windows can be locked, this is part of legislation, there is a smoke alarm installed - legislation. Air conditioners, ovens, appliances etc work - legislation again.


There reason I'm suggesting these is that owner occupiers sometimes put up with things that tenants will not. I've been given houses where the screen door had a broken lock but they had a rubber band they used to secure it from the inside lol. Not ok for tenants.


Some improvements can make a difference, a depreciation schedule as mentioned above.Get an opinion from a person on the ground.

You also need a rent appraisal.

 

You might want to consider a spousal sale. your spouse could have bought it off you for say $230,000 and borrowed 100%. You could have avoided CGT as it was the main residence so you would have walked away with about $95k cash which you could use for the new main residence.

Not being the main residence now would mean it would be subject to stamp duty (could have probably been exempt if you did it before moving out), but it may still be worth doing depending on the numbers.

This could result in about $5,000 extra tax deductions for the next 30 years or so

 

that was my thought but spouse lost her job and her next job was only for 3 months and now has another job lined up when the other finishes but would have to wait 6 months so and then who knows if able to even borrow that amount.

also has no real savings showing as cash is against new house in my name in offset

and already has an ip of her own

stuck between a rock and a hard place.

would i be able to go as a guarantor to get it across the line if needed?

i haven't rented it out yet but have asked the agent to look into it.

 

that was my thought but spouse lost her job and her next job was only for 3 months and now has another job lined up when the other finishes but would have to wait 6 months so and then who knows if able to even borrow that amount.

also has no real savings showing as cash is against new house in my name in offset

and already has an ip of her own

stuck between a rock and a hard place.

would i be able to go as a guarantor to get it across the line if needed?

i haven't rented it out yet but have asked the agent to look into it. and has been for sale since moving out if that means anything?

 

Yes, you could go guarantor, but seek tax advice.