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Viewing 5 posts - 1 through 5 (of 5 total)

Administrator
Keymaster
@piadmin
Join Date: 2013
Post Count: 3,225
July 30, 2003 - 10:23 am
hi,my name is Rick,I am a new member,I am presently living in cash property all paid for and I recently bought an investment property which I owe 60% to the banks.I am planning to move into this new property but I do not know what to do with present home ,should I sell it or keep it, if so shall I rent it out and what Tax benefit would I get .If someone could help me with this issue.thanks[?]
AD
Participant
@ad
Join Date: 2002
Post Count: 636
July 30, 2003 - 10:33 am
Hey Rick,
Why sell? why keep? What do you want to do next? What is your property goal/dream? What are your desired outcomes in life?
I guess the point I am making is be clear on what you wish to achieve. Do only things that bring you closer to that goal. Be creative and energetic about getting to that goal.
Enjoy
AD [:0)]
(Andrew)
“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
willi
Participant
@willi
Join Date: 2002
Post Count: 186
July 30, 2003 - 10:42 pm
There are many thigns you can do
1. Refinance your current home and use the equity to buy more houses – thus all interest will be tax deductable
2. Rent it our and use the rent as passive income
3. Sell it and then use the cash to buy more houses – although CGT may be payable.
These are just a few, as AD said it comes down to your goals etc. That is what you need to come up with first, if you don’t have clear definded goal, you want get anywhere…
Pete
…Beware of the dreamtakers…
Administrator
Keymaster
@piadmin
Join Date: 2013
Post Count: 3,225
July 31, 2003 - 12:53 am
Thanks AD & Willi,
I will sure look at my goals and directions.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 31, 2003 - 12:58 am
This is a difficult question that many people face.
If you rent it out you will have to pay tax on all the rent, at the same time you will be paying interest on your new home whith after tax dollars.
If you sell it would be CGT free. So maybe if you can get a good price, it would be better to sell, and use the money to pay off your new PPOR and the left over for more investments. (You could also get a LOC secured on your new home for even more ips)
Terryw
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au