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Additional property purchase with view to rental initally and then move in!

Discussion in 'General Investing Discussion' started by bazmania, 11th May, 2009.

  1. bazmania

    bazmania New Member

    11th May, 2009
    Melbourne, VIC

    Currently live in own home with P&I mortgage. (309k remaining)
    About to buy additional property (circa 750k) with IO mortgage.

    Intention is to rent out new additional property for a couple of years, then move in and rent out my current home as an investment property.

    What is the most effective way to ‘engineer’ this in order to minimise Tax payments. I am familiar with only being allowed a PPoR at any single time and also the 6-year CGT Rule.

    Technically could I ‘move’ into my new property for a month, ‘move’ out and back into my existing property and then rent out the new property and still have CGT Tax exemption up to 6 years in the new property?

    Prior to moving into my new property in a couple of years, can I remortgage existing property (increase loan to increase interest payment), and transfer lump to new premises?

    Thanks in Advance