Bought Land, What next ?
 

Hi,
We have at last sold our house after it fell through two years ago. :)
while over in Oz two years ago we bought some land outright,which we intend to have our dream house built on.
what we are thinking of doing when we move over in 6 weeks time is buying a run down medium sized house with some of the capital from our house sale here in the UK doing it up a bit and then selling it just before we move into our newly built house on our land.
By doing this we assume we would not have to pay CGT as the new house becomes our main residence, what we are not sure about is, as we owned the land before would that give us CGT problems ?

Once we have moved into our new house we then would like to buy a small rental house for an investment, we have looked into neg gearing, poss gearing, tax breaks etc. etc. and really we are little confused, but feel that if you have a profit after all the costs on a rental property and earn approx $60,000 PA even if you have to pay tax on it, it is still money in your pocket and hopefully if when we do sell it, say in 10 years time, make a gain , pay 50% in CGT its all profit again. (we would not take any write down allowances as you have to give it back when you sell by adding allowances to Capital gain).

Are we doing the correct thing here, or should we be renting when we 1st get to OZ getting a loan to build our house, or keep the house that we plan to buy and then rent that out etc,etc.

Any help or advice please would really help. :) :)

Many thanks

Dave & Kay

Re: Bought Land, What next ?
 

Ask your questions again HERE

We are also looking into PI when we arrive.

Regards,
Ian

Re: Bought Land, What next ?
 

thank you Ian,

Any one else with any advice ? :)

Re: Bought Land, What next ?
 

Can any one help us on the CGT side of things