Hi.

My partner and I bought our first property 5 months ago. Now I need to relocate interstate for a 2 year assignment. I am looking at renting it or selling it. What is the best way to go about it?

Thanks
Jason

Hi Jason,
Congratulations on getting your first property and on the work assignment. Some of your decision would be financial and some of it personal or emotional.
My thought would be keep it if you can reasonably comfortably afford to. This would keep your feet in the market and make it easier for you returning to Melbourne in 2 years.
Will you be provided property interstate or will you have to rent/buy something there?
If you need to buy, you may need the capital to do it but you would also drop a significant amount in selling.
Happy to have a chat if you are interested to dig a bit deeper
Best regards
Scott

Hi Jason,

I'll say it depends.

Depends on:
1. What you plan to do with the money if you sell? Remember selling and buying property is costly so not something you want to do very often.
2. What do you think the growth prospects are for the property you have bought over the next couple of years?
3. What are your living arrangements going to be whilst on assignment?

For 2 years I'd generally say just keep it and rent it out. Get yourself in front of a good accountant to make sure you have yourself set up to be able to claim the most deductions possible on your property.

All the best.
James

Hi Jason,

renting is not going to be a problem from a TAX perspective....you just need to report the income and claim the deductions. Also you have a 6 year window after you move out of your property when you can move back in again without creating a capital gains tax issue later on.
BUT
your bank might have an issue with a loan issued on the basis of an owner-occupier which all of a sudden turns into an investment property. Probs needs looking at.

cheers
bc

Hi Jason,
Renting both ways is probably the easiest financially. Two years is generally too small a time period to benefit rom capital growth versus the costs involved so that’s a good choice in my opinion
You may also have to consider if you received a first home owners grant and any implications for that?
Cheers
Scott