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David | 14 Nov 2013, 06:39 AM Agree 0
Hi all. Im planning on buying my parents apartment in Homebush because they are struggling with the repayments. I was then planning to keep them there as tenants and using it as an investment property in turn using the equity to invest more.

I know this might seem like a silly question but I just wanted to know if this is legal and if there is anything else I need to know about this process?

Or is it treated as a normal sale regardless of who I buy from?

Thanks
Dave
  • Goodo | 14 Nov 2013, 03:18 PM Agree 0
    Your plan to buy this property is OK. It doesn't matter who your tenant is, if the property is purchased as an investment the you would be able to claim the interest as a tax deduction (e.g. as long as you have a primary address elsewhere). Having said this, the rental your parent have to pay would have to be the normal rental for that property. You can't rent it to the for say $1, and claim a massive tax loss.
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