When you are involved in property investment you soon discover that a lot of options are open to you that were not there before. One of those options may be that of nominating an investment property as your principal residence.
There are strict guidelines and limitations involved, so read this article carefully and get advice from your tax accountant regarding your own specific situation.
Principal residence CGT exemptions and property investment
One of the nice things about having a home in Australia is that you are not generally taxed on the capital gain when you sell it. Many people will continue to upgrade their home during their working life, then downsize during retirement, producing a tax free capital gain to help themselves at that time.
However, did you know that your principal residence doesn’t need to be the home that you are presently living in? Under some circumstances it could be your investment property.
Your principal residence needs to be a home that you did live in for a time, and if you are not living in it, it can only continue to be your principal residence for seven years. But, if you move back in before the seven years is up, it can remain your principal residence after you move back out for another seven years.
There are a bunch of conditions and matters to consider, such as brief overlaps where you can have two primary residences. If you think you might want to utilise this provision you need to discuss it in detail with your accountant as some details may change and your own specific situation needs to be considered.
Loans for property investment
If you are involved in or are considering property investment, give the friendly credit managers at State Custodians Mortgage Company a call. They are very experienced in providing the finances for such an investment and will be very helpful to you. Call today on 13 72 62.