Unfortunately, yes it does matter. We have made this mistake with our PPOR. Also be careful if you are refinancing not to increase the amount of the loan above what you would need to pay for the refinance of the original mortgage, because any extra pulled out will not be considered part of the "investment purposes" even though it is secured against an investment property.Our current loan has a redraw activated but we'd be refinancing the property before making it an investment property - does that make a difference? Surely redrawing on the loan would only come in to play while its an investment not while its our primary residence?
If you move back in before 6yrs is up, then no CGT is payable. You could then move out in the future and the 6yrs starts again - it is not cummulative. The only time a problem arises is if you purchase another property to move into in that time. You cannot claim more then one property at a time as a PPOR for taxation purposes - luckily if you are moving between two houses you don't actually need to "decide" which is the PPOR, until such a time as you sell one of them, however the other will have CGT applied for the whole period.WRT Capital gains tax, what happens if you move back in to the property within the 6 years, and use it as your primary residence again? If ever use it as an investment again does that 6 years continue from where you left off, or would it include the time where you lived in the property as a primary residence?
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