Join our investing community

renting out my current home and renting another?

Discussion in 'Real Estate' started by shaneoz, 24th Oct, 2009.

  1. shaneoz

    shaneoz New Member

    Joined:
    24th Oct, 2009
    Posts:
    2
    Location:
    sydney,nsw
    hi
    im shane and i have a question. id like to rent out my property an rent another,or if possible buy another.i have owned my home for at least 6 mths,will i have to pay capital gain tax if i decide to do so?please note also that i originally brought the property from family at a below value cost.the property was valued at $310,000,an i purchased it for $281,000.
     
    Last edited by a moderator: 24th Oct, 2009
  2. Saskatoon

    Saskatoon Well-Known Member

    Joined:
    17th Oct, 2005
    Posts:
    67
    Location:
    Aldgate, SA
    Shane, the strategy of renting out the property you own, and renting another to live in can be a good way to go. Just do the numbers about affordability, tax concessions etc. There is plenty of info on this site and on the Somersoft forum as well.
    You are only liable for Capital Gains Tax if you sell.
     
  3. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    Shane

    You could rent it out for 6 years and have no CGT implications
    but remember you only get exemption on 1 property so if you live in another property renting, that's fine but if you buy a 2nd property & live in it you can only claim the CGT exemption for 1 of the 2 properties.

    I hope it makes sense and here is some more info

    Moving on? Remember the six year rule for CGT
     
  4. shaneoz

    shaneoz New Member

    Joined:
    24th Oct, 2009
    Posts:
    2
    Location:
    sydney,nsw
    enting out my current home and renting another?

    Hi
    thank you very much for your info it has been very helpful.also which way would be better to go renting my house out privately or go through a real estate? What would be the difference if i did an how much roughly would i have to outlay to the real estate?any info will be very helpful thank you.
     
  5. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    I'd use a property manager
    Standard fee is 6-7% and they take a week's rent for finding you a tenant, advertising, doing the usual checks etc