Hi this is my first time here I’ve only been serious about property for less than a year, we have 1 -geared house that has risen about 40K since last March, now we’re building a second, our goal is to get enough equity to buy a business are we heading in the right direction?
Hi Phil
Welcome to the forum.
We look forward to hearing your experience more often.
Good luck with your plan.
Cheers
Leigh K[
]Carve your own path and lead the way …
Hi Phil,
Give a bit more info, and you’ll get some more details replies.
Cheers
rOk Richmond
3years ago we paid 104K for PPOR now worth 180K, In march we bought a 4×2 IP for 155k now worth 195K. now we’re building a 4×2 IP cost 220K finished aprox value 280k. So 665k total value and 465k of debt. And as I said I want to buy a business in the next couple of years does it look like I’m on the right path?
ThanksPhil, it looks like you are doing well. You’ve added approx $180K to your bottom line since purchase of your PPOR 3 years ago.[^]
If you like the strategy of building, it obviously seems to work for you, so maybe continue doing that. As for the business, well, I guess it depends how much it would cost, and therefore how much of a bank loan you could get against it, unless you wanted to pay cash.
I guess if I were you I would be working out exactly what I needed to buy this business, and then work backwards from that to see what you need to achieve, and in how long.
Cheers
MelThanks Mel
I have two issues in my head 1. our 2IPs are negatively geared and 2. the idea of selling anything and paying 25% CGT kinda bugs me.
I want to build again but with out some major change I can’t afford to pay another dollar.Phil, there are ways to ‘minimise’ your CGT. Basically you sell when your income is going to be quite low. I think you can still prepay interest on your loans – this is one way to reduce income. Also if you’re sitting on any capital losses anywhere (shares for instance) now could be a good time to liquidate – even if you were to buy back in at the same price.
Another thing I am looking at doing at the moment is to refinance and pull out some of my equity. I will use some of this to continue investing, but I will also keep some aside to pay my interest bills – so I don’t have to worry about where that’s coming from.
You are on Interest Only loans? If not, there’s a way to save some $$$ from your monthly payments.
Cheers
MelThanks Mel
How exactly do you pull out equity by refinancing?
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
