Hey all!
Ive recently been considering renting out rooms in my home due to the cost of living
i built my first home and moved in mid April last year- it has now been over 12 months.
I was quite lucky and signed all paperwork to start building just as COVID hit- so got really good prices with my build. Due to this and the increase in housing prices around my area i estimate to have roughly $600-800k in equity.
i have a $490k mortgage so my solo repayments are about $1700 a fortnight- which take up the majority of my pay. I’m struggling a little.
Ive recently started exploring the option to rent out 2/3 bedrooms in my home- but haven’t been able to work out how the equity works, and the taxes.
Would I have to pay capital gains on the 600-800k just for renting out for a year or so, or am I able to get my house evaluated as it stands now a and then pay capital gains on what my house increases by from that point? (So say it was evaluated at 1.1 and sold for 1.2, I would pay capital on 100k instead?)
I also don’t know if I’m eligible for any concessions at it is my first home and my principal place of residence and I’ve owned it for over 12 months.
im also assuming I would claim the rent received on my earnings and pay tax on that too.
any help or assistance in this space would be greatly appreciated- thank you so much!!!!
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