Hi.
I'm very new to property and value opinions on the following. My partner has a house we currently live in. 100% owned. I bought a house in my name last year which we've just spent a good 8 months getting to move-in stage, but still more work to do (it was a dump! … but in a good area).
Question is – either we can rent our current fully-owned house (which I'm thinking is 'positive gearing'), move into my investment property to finish off the work still required to be done, then in 12 months or so move back to our main house and rent out the investment property.
OR Stay where we are, rent out the investment property now (without ever having moved in .. this is my first house) for a minimal rental as we will need to continue to access it to carry out the rest of the renovations, then in 6 or so months, re-rent it for a higher price. We have a 100% loan for the investment property, currently on interest-only. I also have a new job for which I shall have a high tax bill, and am looking for ways to minimise my tax (and am thinking there MUST be more ways than just negative gearing…as I understand this you are slugged for eventually when you sell anyway).Income from renting our fully-owned house would be just under twice that of the investment property at its unfinished stage.
Opinions welcomed!
Deb
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