Talk to a financial advisor or accountant or solicitor to get the correct legal and tax advice.
As I stated earlier your house is your largest asset and it took you a long time to earn it... don't rush to a decision.
My opinion is you should rent and hold on to an appreciating asset, unless you need the cash now.
Renting need not be a nightmare if you do your homework. Firstly find an agent with a large rent roll who specializes in that area and check what their inspection intervals are, how they vet rental applicants making sure you have the final say. Most people who rent properties do so without any problems whatsoever. Talk to your insurer and make sure you get landlord insurance which you can purchase separately and it is not expensive.
In most areas of Australia rental properties are in high demand at the moment.
-- Edited by montie on Friday 20th of May 2022 12:38:06 PM
DMaxer said
12:09 PM May 20, 2022
Montie, I am sure you mean well but neither an accountant nor a financial adviser is permitted to give legal advice. They can give accounting advice only. They are not even permitted to draw up documents such as power of attorney, leases or contracts.
To give legal advice you need to be legally qualified and hold a practising certificate or alternatively be a member of a caravan forum.
Cassie63 said
12:29 PM May 20, 2022
Question was do I rent my house out...NO
-- Edited by Cassie63 on Friday 20th of May 2022 12:30:31 PM
montie said
12:38 PM May 20, 2022
DMaxer wrote:
Montie, I am sure you mean well but neither an accountant nor a financial adviser is permitted to give legal advice. They can give accounting advice only. They are not even permitted to draw up documents such as power of attorney, leases or contracts.
To give legal advice you need to be legally qualified and hold a practising certificate or alternatively be a member of a caravan forum.
Fixed.
Wizardofoz said
01:41 PM May 20, 2022
There is a '6 YEAR RULE' That exempts you from CGT for that period of rental if you move back in 'within' that period, check it out with the ATO or your accountant, but this is the rule. If you do rent the home, it is important to remember this, you control the tenant selection not the agent, they work for you (or are supposed to), I rent several properties out, via various agents, my rule is, every tenancy application must be forwarded to me to seek my approval. After Nearly 40 years of leasing property,I have had 1 bad tenant and 2 average tenants, considering Most only stay for between 6 months and 3 years, that's a pretty good strike rate, one lady has been in occupation for over 28 years. Importantly, unless there are special circumstances, I only ever give 6 monthly leases, that way I can decide on whether they should be given a lease renewal or not. Landlord insurance is also a good option, most agents can organise this for you, if you don't wish too. Good luck with your decision, whichever way you choose.
-- Edited by Wizardofoz on Friday 20th of May 2022 01:43:26 PM
Are We Lost said
02:15 PM May 20, 2022
The 6 year rule applies if you get any income from it. Leave it vacant with no income and the clock stops. Then CGT applies on the proportion of time it was not a principal residence.
As others have said, taking financial advice on a forum is risky, so take my comment with that in mind. And your personal situation may affect your liability as well.
Back to the original question .... in my earlier post I suggested looking on it as a long term investment. There may be bumps with bad tenancies but averaged out, it is usually worthwhile.
Aus-Kiwi said
05:57 PM May 20, 2022
Ways around income . Kids bank account etc ??
deverall11 said
06:27 PM May 20, 2022
If there is a way to cause confusion and repeat ad nauseam what has already
been said, you have found it here.
Have a say even if it has already been said or if one has no knowledge on the
subject at hand and if in doubt invent it.
Truly an amazing phenomenon that should be studied by people like the CSIRO.
yobarr said
06:30 PM May 20, 2022
Aus-Kiwi wrote:
Ways around income . Kids bank account etc ??
Ssshhhh Graeme. People seem to get a bit touchy when a bit of, shall we say, 'initiative' is introduced. Avoiding CGT is one thing that can be 'got around' with a bit of imagination, but not on a public forum! Cheers
DMaxer said
06:58 PM May 20, 2022
Reading the advice from some of the posters on this topic has caused me quite a few issues as I suffer from ilithiophobia.
montie said
08:34 PM May 20, 2022
DMaxer wrote:
Reading the advice from some of the posters on this topic has caused me quite a few issues as I suffer from ilithiophobia.
So that's what it is!
Cuppa said
08:48 PM May 20, 2022
Daqtar wrote:
Greetings all,
My partner and I are intending to do the big lap soon.
My question is, do I rent out my house?
This means:
Placing my household goods into storage, which means packing everything up (I'm not as fit as I used to be) that will be a pain.
Getting a real estate agent to manage the property
Landlord Insurance.
After the trip:
Getting my goods out of storage.
Overall, the cost of storage, insurance and Realestate management costs
What would be your income return at the end of the day (rental approx $400)
Is it really worth it?
I reckon it depends upon how long you expect to be gone for. Probably not worth it if you'll be away just for 12 months. Also depends on your emotional attachment to your house. Is it more than money if the tenants kill your favourite tree or don't look after the renovations you put your heart & soul into.
I think finding a trustworthy real estate rental manager can be problematic, & it's worth doing your homework. I have heard as many rental manager horror stories as I have bad tenant stories.
yobarr said
08:57 PM May 20, 2022
DMaxer wrote:
Reading the advice from some of the posters on this topic has caused me quite a few issues as I suffer from ilithiophobia.
Maaate. Thankyou so much! You've helped me with finding a word to describe what I have struggled to manage for some time now. The biggest biggest asset held by many people is their ignorance. Cheers
deverall11 said
09:46 PM May 20, 2022
DMaxer wrote:
Reading the advice from some of the posters on this topic has caused me quite a few issues as I suffer from ilithiophobia.
X2
Aus-Kiwi said
09:20 AM May 21, 2022
In my case I only paid capital gains when I sold when not your primary residence. . I made sure I had no or little income in that year . So i lowered the C.D big time . What you have to be careful is doing things to save a few cents that MAY cost thousands ! First you have to live and ENJOY LIFE !! One could have a stroke or the big C at any time !! Just do to a point what youve always wanted ! I go back a few years ! An older German Couple from
Tasmania, traveling in their Merc Sprinter they both built to motorhome . I went talked to them said I like their set up . He said his wife had a stroke and we are going to North Queensland . Thats when his Mrs in stern ex pat German style !! Said YES WE ARE GOING ! talk about instant tears from This 120kg Kiwi . She was so determined to do what they wanted, dreamed near all their life !! 20 years ago seemed like yesterday ! Great example of how life goes !! Sad and heart warming at same time !!
-- Edited by Aus-Kiwi on Saturday 21st of May 2022 09:25:34 AM
-- Edited by Aus-Kiwi on Saturday 21st of May 2022 08:49:44 PM
Daqtar said
04:48 PM May 21, 2022
Ok, Yes my profile is correct!
I am a pensioner - Ex Military
-- Edited by Daqtar on Saturday 21st of May 2022 04:48:42 PM
Wanda said
10:04 AM May 22, 2022
Daqtar wrote:
Ok, Yes my profile is correct!
I am a pensioner - Ex Military
-- Edited by Daqtar on Saturday 21st of May 2022 04:48:42 PM
That being the case, I would be speaking to your accountant before making any decisions. He will advise you on tax implications both personally and CGT. And ways around them??
Still worth exploring that option, renting out house or not!!
cheers
Ian
Peter_n_Margaret said
10:29 AM May 22, 2022
We rented our house out for 12 months while we volunteered in Fiji.
There was some financial benefit, but not anywhere near what you may imagine.
There was also a considearble ammount of work and stress. We found letting agents to be untrustworthy.
Under similar circumstances, we would not do the same again.
Talk to a financial advisor or accountant or solicitor to get the correct legal and tax advice.
As I stated earlier your house is your largest asset and it took you a long time to earn it... don't rush to a decision.
My opinion is you should rent and hold on to an appreciating asset, unless you need the cash now.
Renting need not be a nightmare if you do your homework. Firstly find an agent with a large rent roll who specializes in that area and check what their inspection intervals are, how they vet rental applicants making sure you have the final say. Most people who rent properties do so without any problems whatsoever. Talk to your insurer and make sure you get landlord insurance which you can purchase separately and it is not expensive.
In most areas of Australia rental properties are in high demand at the moment.
-- Edited by montie on Friday 20th of May 2022 12:38:06 PM
Montie, I am sure you mean well but neither an accountant nor a financial adviser is permitted to give legal advice. They can give accounting advice only. They are not even permitted to draw up documents such as power of attorney, leases or contracts.
To give legal advice you need to be legally qualified and hold a practising certificate or alternatively be a member of a caravan forum.
Question was do I rent my house out...NO
-- Edited by Cassie63 on Friday 20th of May 2022 12:30:31 PM
Fixed.
There is a '6 YEAR RULE' That exempts you from CGT for that period of rental if you move back in 'within' that period, check it out with the ATO or your accountant, but this is the rule. If you do rent the home, it is important to remember this, you control the tenant selection not the agent, they work for you (or are supposed to), I rent several properties out, via various agents, my rule is, every tenancy application must be forwarded to me to seek my approval. After Nearly 40 years of leasing property,I have had 1 bad tenant and 2 average tenants, considering Most only stay for between 6 months and 3 years, that's a pretty good strike rate, one lady has been in occupation for over 28 years. Importantly, unless there are special circumstances, I only ever give 6 monthly leases, that way I can decide on whether they should be given a lease renewal or not. Landlord insurance is also a good option, most agents can organise this for you, if you don't wish too. Good luck with your decision, whichever way you choose.
-- Edited by Wizardofoz on Friday 20th of May 2022 01:43:26 PM
The 6 year rule applies if you get any income from it. Leave it vacant with no income and the clock stops. Then CGT applies on the proportion of time it was not a principal residence.
As others have said, taking financial advice on a forum is risky, so take my comment with that in mind. And your personal situation may affect your liability as well.
Back to the original question .... in my earlier post I suggested looking on it as a long term investment. There may be bumps with bad tenancies but averaged out, it is usually worthwhile.
Ways around income . Kids bank account etc ??
If there is a way to cause confusion and repeat ad nauseam what has already
been said, you have found it here.
Have a say even if it has already been said or if one has no knowledge on the
subject at hand and if in doubt invent it.
Truly an amazing phenomenon that should be studied by people like the CSIRO.
Ssshhhh Graeme. People seem to get a bit touchy when a bit of, shall we say, 'initiative' is introduced. Avoiding CGT is one thing that can be 'got around' with a bit of imagination, but not on a public forum! Cheers
Reading the advice from some of the posters on this topic has caused me quite a few issues as I suffer from ilithiophobia.
So that's what it is!
I reckon it depends upon how long you expect to be gone for. Probably not worth it if you'll be away just for 12 months. Also depends on your emotional attachment to your house. Is it more than money if the tenants kill your favourite tree or don't look after the renovations you put your heart & soul into.
I think finding a trustworthy real estate rental manager can be problematic, & it's worth doing your homework. I have heard as many rental manager horror stories as I have bad tenant stories.
Maaate. Thankyou so much! You've helped me with finding a word to describe what I have struggled to manage for some time now. The biggest biggest asset held by many people is their ignorance. Cheers
X2
In my case I only paid capital gains when I sold when not your primary residence. . I made sure I had no or little income in that year . So i lowered the C.D big time . What you have to be careful is doing things to save a few cents that MAY cost thousands ! First you have to live and ENJOY LIFE !! One could have a stroke or the big C at any time !! Just do to a point what youve always wanted ! I go back a few years ! An older German Couple from
Tasmania, traveling in their Merc Sprinter they both built to motorhome . I went talked to them said I like their set up . He said his wife had a stroke and we are going to North Queensland . Thats when his Mrs in stern ex pat German style !! Said YES WE ARE GOING ! talk about instant tears from This 120kg Kiwi . She was so determined to do what they wanted, dreamed near all their life !! 20 years ago seemed like yesterday ! Great example of how life goes !! Sad and heart warming at same time !!
-- Edited by Aus-Kiwi on Saturday 21st of May 2022 09:25:34 AM
-- Edited by Aus-Kiwi on Saturday 21st of May 2022 08:49:44 PM
-- Edited by Daqtar on Saturday 21st of May 2022 04:48:42 PM
That being the case, I would be speaking to your accountant before making any decisions. He will advise you on tax implications both personally and CGT. And ways around them??
Still worth exploring that option, renting out house or not!!
cheers
Ian
We rented our house out for 12 months while we volunteered in Fiji.
There was some financial benefit, but not anywhere near what you may imagine.
There was also a considearble ammount of work and stress. We found letting agents to be untrustworthy.
Under similar circumstances, we would not do the same again.
Cheers, Peter