PLS Help
I have a dilemma were I have been lucky enough to buy in the right area at the right time.
I purchased a property (property 1)1 for $105k and spent $50k renovating it. I currently owe $150k on the property and have an interest only loan. The property is currently being rented out for $700/wk. The property was valued at $300k in December 06 and similar properties are on the market for $400k. I still have 2 yrs to run on the lease. And I have never lived in the property.
I have just built property 2 and I am living in the property. I owe 430k on this property and I am repaying the loan plus interest. The property has just been valued at 500k
My question or questions are
Should I sell property 1 and put the money on the loan for property 2 so I am not paying so much interest on property 2’s loan and re-invest using the equity.
If I do sell property 1 how can I limit the amount of CGT?
At the moment property 1 is only in my name property 2 is in my and my partners name. Is it possible to put the property in both names and how do you do it.
What would you do if you were in this situation.
I would keep property 1 and use the extra money from it to pay into property 2.
Unless for tax reasons you want to change property 1 into both names I wouldnt do it, its not as simple as it seems. (speak to your accountant about whether this is financially beneficial for you)
When you are receiving great returns on an investment property – you should hang on to them, and go see the bank about buying another property!
This is most probably what I would do.Curtainly hold property number one. With that cashflow coming in it’s a great investment.
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