Hello all
Let's say you live in your own home at the moment, and it has no debt on it. Let's say you will want to move into something larger (thus more expensive) at some point in the future. Not sure how far into the future! Say 5 or 10 years I guess.
What would your strategy be and why? For eg, would you simply sell up and upgrade now (and possibly have to borrow a bit to do so)? Or would you collect a series of small investment properties and enjoy the tax breaks on them for a few years, and then sell a couple later to fund the upgrade in PPOR? Or something else??
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Awww no-one likes my topic
Super keen to hear people's thoughts
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Given that the PPOR is CGT exempt, and the goal you've outlined is singular and clear, I reckon I would think about a 7 year plan to purchase, upgrade (renovate) and sell every 1.5 – 2 years. Buying and selling costs could be a burden, but at least it would provide a simple path. A more complex twist might be to do something similar, but instead of just renovating, perhaps developing on a small scale with each property….this may even allow the retention of one or two IPs as a "bonus"! BTW, I like your topic, and look forward to seeing how others might attack this sort of goal.
I would probably just keep on buying investments and then store spare cash in a offset account.
When you want to upgrade sell the existing one, CGT free and use the cash in the offset.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Christian and Terry,
You've both given me some extra ideas. Thankyou for contributing!
jac
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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