PPOR partly rented while away

Discussion in 'Property Management' started by Snookered, 10th Dec, 2014.

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  1. Snookered

    Snookered New Member

    Joined:
    1st Jul, 2015
    Posts:
    1
    Location:
    Victoria
    Hi all,

    A lot of knowledgeable people here.

    I have a question regarding partly invested properties for short periods while away.

    I started work and was required to live away from home for a period of 18months. On the 10th month I purchased my first property as my PPOR, but since I was living away from home for work I had allowed some short term rentals in my place while away.

    After my secondment I moved into my property to live in and lived there with my girlfriend for the next 24months. During this time I rented the second bedroom to a friend. Deductions were claimed throughout these periods due to the asessible income.

    I am now in a position to purchase a new PPOR, but want to make sure I can use the available equity to purchase a new home.

    i.e. PPOR Purchased for $500k, after 3 years of living in and out I now owe $300k

    I would like to purchase a new PPOR and convert this to a 100% IP. BUT, I would like to borrow $100k against my current PPOR in order to do this and put it towards my new PPOR.

    Very curious to understand if this can be done efficiently?

    Cheers all
     
    Snookered, 10th Dec, 2014
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    42,001
    Location:
    Australia wide
    Subject to servicing it could be if the valuation stacks up. But the interest on this won't be deductible

    Also sounds like your old PPOR is subject to CGT.
     
    Terry_w, 13th Dec, 2014
    #2
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