What does principal place of residence mean

What are the legal requirements qualifying a principal place of residence?

 

We like the area we currently live in, but can't afford to buy here. The rental returns here are not great (not sure why), so we CAN afford to rent here. I am thinking about buying a home in an area with a good rental return that will give us a rental income equivalent to what we currently pay in rent. I was unsure of how long the house we buy had to be our "main residence" for CGT and first home buyer reasons. There is so much information out there - it's all a bit overwhelming.

 

I was just reading that you can still claim the first home grant even if you own investment property that you have never lived in. Other than the hit on CGT, this looks promising.

 

So what happens if we reverse situation – buying as IP, renting it for 3-4 years then moving in for another 4 years and selling as your PPOR. Is this going to be calculated per years you lived in? Lets say first period of time IP didn’t go in value then you moved in just to realise you price double while PPOR. How do you prove to ATO you didn’t get any gains while IP?

 

I do not think you get the First Home buyers stamp duty exception, if you have owned an investment property.

 

You are probably right, I was thinking that in Qld you do not get the stamp duty exemption if you have owned an IP. When I was looking into it, the criteria was different to the FHOG.

 

Thanks, will look into it. Other than NSW waiving stamp duty, the state bonuses are't that great really. And the stamp duty waiver in NSW is only on property under $600K - and I am sure I will be spending more than that on a PPOR in Sydney when I buy one!

 

It seems in both NSW and VIC you can have owned property bought after 2000 as long as you have not lived in it and still be eligble:

"All applicants and/or their spouse/de facto have not owned on or after 1 July 2000 a residential property and occupied that property jointly, separately or with some other person in any State or Territory of Australia for a continuous period of at least six months."

 

Aren't that great? Sheesh... When we bought our first home there were NO grants, we paid full stamp duty and when we had our three children, no baby bonuses either. How times have changed

There's plenty (in fact more than half of Sydney's suburbs) of places to purchase under $600K too- it all depends on where you want to live and what you're prepared to compromise on

Lap up the handouts whilst you can, as I truly believe the current buyers market is not likely to last.

 

a question re PPR (principle place of residence)

Hi all .... In the context of PPR talk ..... I'm hoping for some similar guidance on PPR ....

I sold a house in 2012 which i bought in 2002. it was listed as PPR from 2002 to 2008, at which time the PPR was shifted to another house, which in fact did not end up being a PPR after all.

The PPR house was rented from 2006 to 2012 (6 years)

What is the effect of it NOT being PPR at the time of sale? Will it still get the 6 year CGT exemption for the rental period? Do I need to fix up the PPR registration?

Where do I get proper info.... the OSR does not have any phone numbers... I was hoping to call them for guidance.

Thanks in advance

 

Where did you list the house as your PPOR?
To qualify as the main residence you must have lived in the house first. If you lived in it initially then you may be able to claim the 6 year exemption s118-145. This section say you can treat a house as your main residence if you are absent for up to 6 years. No need to move back in again to claim it.
But you cannot claim another residence as the main residence for CGT purpose at the same time.

OSR is a State agency that administers land tax and stamp duty etc. Nothing to do with the CGT laws which is administered by the ATO. OSR in NSW have phone numbers on their website and I ring them all the time. Bu they won't help you with CGT>

 

thankyou!

i very much appreciate your reply