Can we rent out our LAQC owned property?
Question from Michelle updated on 8th October 2007:
My husband and I have bought a rural property. We plan to build a house on the property in the next 6 months. We want to set up an LAQC for our current property. Are we able to rent out our current property and then rent somewhere much cheaper to save for our new house?
Our expert responded:
The short answer is that yes, you can do this, as long as your existing property is sold to the LAQC at market value. The one thing that I would look at is whether or not your home will work as an investment property, as it is my experience that when you take into account the market value of the home and compare it to other properties and the rent you could get, sometimes, the old home does not work as an investment property. I would make sure that you take some advice on this to ensure you are taking the right course of action for your particular circumstances.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.
Search the Ask an Expert archive
Browse all questions in the Ask An Expert Archive »