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Friday 6 February 2015

RBA cuts rates to record 2.25% low at February 2015 meeting

RBA cuts rates to record 2.25% low at February 2015 meeting

Reserve Bank Of Australia (RBA)/Jonathan Chancellor – Property Observer

The Reserve Bank of Australia has cut rates to a new record low of 2.25%.  The RBA noted credit growth picked up to moderate rates in 2014, with stronger growth in lending to investors in housing assets.


 What are the implications if you move into your investment property?

What are the implications if you move into your investment property?


Buying your first property as an investment and moving into it later can allow you to save substantial funds upfront.

If you want to move in but your tenant has not yet completed their lease, make sure you speak to your property manager about your options. You are required to fulfil the tenancy agreement and provide the relevant notice periods.

A capital gains tax exemption is likely to apply for the period that you have lived in the house, however you will still be taxed on the portion of time that it was an investment and was rented.

Living in the property for more than 12 months triggers a 50% Capital Gains Tax (CGT) reduction. If you have lived in the property, as well as rented it during ownership, and subsequently sell at a later date, then the property incurs pro-rata capital gains tax using the cost base on the first half and the eventual sales price. It is calculated according to the days rented and not rented, with the “not rented” period attracting a CGT reduction.

However it does get more complicated if you were to rent out a portion of the property, which would require the period of time that you lived alone in the property to be calculated pro-rata as above with the potential CGT exemption, and the period of tenancy to be calculated under a different method for CGT. Moving into the property will make you lose any year to year deductible negative gearing benefits on that investment.

Speaking to your accountant is a must, the impact will be mostly felt when you sell, not before.


If you would like to discuss any of your property needs, whether it be renting/selling your property or buying a property,  please feel free to contact me on 0413 807 344 or you can email me on with your enquiry.

I look forward to hearing from you.

Martine Harvey
Raine and Horne Double Bay




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Credit: @thelittleinterior

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Credit: @javi_design


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Credit: @globewest

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Credit: @kevin.vaughan

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Credit: @terezapregodesign

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Credit: @nookoandco

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Credit: @dominiquejonesinteriors

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Credit: @robmillsarchitects

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Credit: @mimdesignstudio

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Credit: @fabiarquiteta

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Credit: @boholuxeinteriors

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Credit: @homeadore

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Credit: @architectureforever

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Credit: @gregnatale

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Credit: @d.signers

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Credit: @byronbayhangingchairs



Credit: @relcriteria




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I am a mother of 2 living in the Eastern Suburbs of Sydney. My two passions are Interior Design and Real Estate. I have been fortunate to have had the opportunity to work in both industries. I started off working in Interior Design assisting Interior Designer Darren Palmer which was amazing and a great experience. What I loved most was working with such a creative sole as Darren and having the opportunity to source and work with gorgeous products. From there I continued with my other passion in Real Estate. I am now a licenced Real Estate Agent with Raine and Horne Double Bay/Bondi Beach working within the Goldman team (Mark and Barry Goldman). As the saying goes:- "It's a beautiful thing when a career and a passion come together" So very true for me and I feel very fortunate to be doing something that I love everyday around my kids and that's also rewarding.

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