Hi All, I am just in the process of purchasing my first investment property and I am just slightly confused on wether or not I should live in the property for 6months to avoid CGT or rent it out straight away. I have not had very helpful solicitors/accountant to show me the way. So I thought it may be worth asking on here so that I make sure I make the right move. I have been advised that I could live in the house for 6months and then rent it out whereby you would be exempt of paying CGT. Prior to renting it out I can get a reevaluation done one the property and use the equity to pay for the 6months stamp duty remaining. Does this sound like a possible solution? Thanks in advance
Reading @Terry_w tax tips, I found what you're stating to be the best course of action to keep you options open, especially when there are talks of axing the CGT exemption this would be even more necessary. Depends on your situation and serviceability potential in regards to whether rent could mean the difference between being approved or not. Regards, Arc
Basically talking about taking advantage of the 6year rule. Sure, it makes sense to play every angle Providing you can afford it still And the bank is happy for the loan to change And remember, you can only claim the single property at any time Basically, the first 30 posts any newbie here should read are Terry's tax tips (that are relevant to their investment journey)
Living in the property as your main residence first may give you more options to save more tax long term. Where did u get the 6 months from?
I was also thinking this length of time to establish it as your main residence, can get a few rates in your name, couple of bills over that time and such.
