All Topics / Help Needed! / Sell or use PPOR?

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  • Profile photo of kitekatkitekat
    Member
    @kitekat
    Join Date: 2011
    Post Count: 1
    July 3, 2011 - 4:12 am

    Hoping you can help out a newbie!

    We have purchased land and plan to build a new, larger home over the next 2 years. We have the option of selling our current home or renting it out while construction takes place. I’ve read up on the benefits of CGT exemptions when using your PPOR and this seems do-able.

    PPOR was valued at $420,000, we owe $243,000 and have a supplementary loan of $91,000. There is high demand for both rentals and homes in our area.

    Is is worth renting out our PPOR for 2 years or should we just sell? We are going to get some advice from accountant but there seems to be a lot a valuable advice offered in this forum, particularly where members have had some real experience.

    Thanks in advance for your thoughts,

    Profile photo of ksherwellksherwell
    Member
    @ksherwell
    Join Date: 2007
    Post Count: 125
    July 3, 2011 - 7:33 am

    Depends on your financial situation and ability to hold. But by the above it looks to be positive geared.

    I’m always one to buy and hold and use available equity

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 3, 2011 - 1:01 pm

    I would suggest you do the figures for each scenario.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 3 posts - 1 through 3 (of 3 total)

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