Buying a house with tenants with plans to knockdown and rebuild

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(Newbie)Newbie

6 Sept 2023

Hi there,

We are considering purchasing a house to knock it down and rebuild a new home.

The house has tenants, and their lease will finish one month after we settle.

The plan is to sell our PPOR to move in once the tenants lease it up and then move out 3-6 months later when the construction starts.

Would we be exposed to a significant capital gains exposure once we sell it? (we will not be renting it out at any point post-construction)

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(Taxicorn)Taxicorn

7 Sept 2023

Would we be exposed to a significant capital gains exposure once we sell it?

Pro-rata CGT based on period leased, so amount will diminish as the period as main residence increases.

Most helpful reply

(Taxicorn)Taxicorn

7 Sept 2023

Would we be exposed to a significant capital gains exposure once we sell it?

Pro-rata CGT based on period leased, so amount will diminish as the period as main residence increases.

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(Newbie)Newbie

11 Sept 2023

Thanks!

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