No - if you buy as an owner occupier but rent the property out within 5 years of purchase then you are liable for the SD clawback (i.e. the difference between what you paid and what an investor would have paid) immediately. If you are buying the property to rent out immediately then you are not, in fact, a FTB owner occupier but an investor - even if the property becomes your PPR later on.shank said:From what I can gather we would have to pay stamp duty clawback of 6% unless we sold the property within 5 years???
You can use Karl Jeacle's mortgage calculator to estimate the mortgage interest payable. You should not assume anything in this context - such as the mortgage interest cancelling out the rental income leaving no tax liability. You need to crunch the numbers carefully and maybe get professional advice.With regards to tax on rental income, how can I calculate what the mortgage interest would be on a 320,000 loan with 3.1% tracker rate over 35 years? I'm thinking that rental income and mortgage interest would cancel each other out so no tax to pay or am I grossly mistaken here?
You lose your FTB status if you buy an investment property as your first purchase.If we are treated as investors, does that mean we would still be first time buyers on buying another property (that we would be owner-occupier on) or do we lose the first time buyer privilege also?
This seems to be a recommendation to engage in tax evasion. Nobody in their right mind would recommend this as a prudent or viable course of action due to the illegality and risks involved.showmedmoney said:you could leave the box room free, say that you have been staying there while liveing elsewhere
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