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PPOR to IP conversion - basics

Discussion in 'Real Estate' started by ian2000, 11th Jan, 2010.

  1. ian2000

    ian2000 New Member

    Joined:
    11th Jan, 2010
    Posts:
    1
    Location:
    Melbourne, Australia
    Hi there,

    I own an apartment worth ~$520k, with ~$400k owing. Our first child is on the way and we're thinking of moving out and renting a larger place for a while, while renting out the apartment with a view to selling in a year or two and buying a house.

    The apartment is in an old building, and the building needs some fairly major repairs, and these will cost me in the region of $25-30k over the next six or so months. If I move out and make the apartment into an investment property before the repairs commence, am I then able to claim the costs as a tax deduction? Are there any issues with timing (i.e. can I make the property into an investment property the day before the repairs commence?)? And are there any other issues that I should consider?

    Thanks for any assistance on the above.