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DH and I are looking at buying a second house. This will eventually be our family home. However, we are thinking we may be better off to purchase it as an investment property and rent it out while we renovate our current home. Buying it as an investment doesn't incur the same stamp duty as buying it as a home, saving us around $14k. Does anyone have any idea how long we would need to rent it out before we could move in to it?
sorry no idea but if you go onto the Office of State Revenue website in your state you should be able to find that information. Rules differ from state to state as it is the state government that gets the stamp duty fees. website address should be www.osr.gov.au and then I think you will need to put / NSW or SA etc etc.
Hope this helps a bit.
Cheers
I'm moving to Adelaide because in Victoria you pay stamp duty regardless of what type of house it is. I'd definately go to the SRO for your state and see if it is in there. GL
I'd advise talking to your accountant, they'll be able to give you advice as to capital gains etc.
Pretty sure it's 12 mths, (same as if you purchase to renovate then sell off) but might be best to check with the relevant authority to be sure.
It turns out DH got the wrong info and you pay the same stamp duty regardless. It'd be the tax implications that would differ. But I will check out that website thanks.
We did this last year. We're in Vic so it might differ a little....
So we bought the second house as our Primary Place of Residence, we were selling our house at the time but weren't sure how long it would take. Stamp duty was maybe $800 less for PPR as opposed to buying it as in investment . We had every intention to move in within a 12 month period (which we did) but rented it out in the mean time until our house sold (things for us were quite tight financially having both). You will have to declare your earnings from the rent but from what I know that should be all that you need to do. Definitely speak with your Conveyancer as they will be able to give you a definitive answer. All the best!