Property Investment Q&A

  • We’re planning to rent out our principal place of residence (PPOR) for a couple of years while we go travelling and then move back into it later. We then want to renovate and sell it. What are the applicable taxes in this situation? Can we still claim a capital gains tax (CGT) exemption? read more

  • My husband and I have owned an investment property for about 10 years now. We lived in it for five years and rented it out for three years. My husband has lived in it for the past two years. Do we have to pay capital gains tax if we sell it now? What can we claim as tax deductions? read more

  • My husband and I recently signed a contract of sale for a property passed in at auction that was subject to a building and pest inspection. When we signed the contract we understood that there was no cooling-off period, and we noted that there was a clause saying that the contract could only be ended if the building and pest inspection found ‘major structural defects’. read more

  • I’m 39 years old and own a four-bedroom property on Oxford Street, Sydney, that I wish to sell. The property is currently leased for less than its market value as a share house, though the lease is a fixed-term agreement with one tenant. read more

  • I’m an Australian citizen and I live and work overseas and don’t own any property in Australia, although I have owned property before and have used the First Home Owner Grant and do not file a tax return as I pay tax in the country I work in. If I purchase a house in Australia as my principal house of residence and rent it out in preparation for my return to Australia, what tax implications will this have for me? read more

  • My husband and I own our home in a blue chip suburb in Brisbane; we bought it in 2003 for $790,000 and were told a year ago (by agents and bank) its value would be $1.1m. An identical house in the same street recently (two months ago) sold for $1.35m, so we assume ours would actually sell for around that too. As we are now living overseas, the house is rented out for $850/week. The rental return is therefore about 3–3.5% and the capital growth has been about 8%pa. read more

  • We bought an apartment in Darwin in June 2005 for $250,000 (purchase price) and moved out of the property in February 2008. We now want to sell the property to buy another house in Perth. A property appraisal for $400,000 was conducted around December 2007. The property has again been rented out in February 2008 until now. Are we liable for capital gains tax? What would the capital gains tax be? read more

  • I'm currently budgeting for the next financial year's expenses and would like to know what expenses can I prepay for my IP. If we move into this IP and make it into our PPOR, can we claim the prepaid expenses back? How does prepayment work? read more

  • I own an investment unit on the Sunshine Coast worth about $360,000 and have been renting in Brisbane. I’m thinking about selling the unit so I can buy my first home closer to where I work. I bought the unit about five years ago for $250,000 so I guess I have about $110,000 in capital gains, before sale costs. I’d rather put my money towards the house deposit than pay the CGT. Is it possible to borrow from the bank to pay the CGT and then claim this as a tax deduction? read more