Hi Guys,
After some advice.
I have a small unit with an Ex Partner in Melbourne, Close to the city and transport etc. She is wanting to sell the property as she wants out and is worried about the market.However by the time we sell we will be making a rather small profit and after the huge dramas of buying the property originally i am thinking of buying her out. The property is currently neutral however once she is out and takes her portion of the offset i will be servicing the mortgage and Strata etc making it a tax benefit for me. I am still on the fence as to what to do and am quite new to the property game so i would appreciate help on what option would benefit me most.
Cheers!
Hi Timbo.
Welcome to the site and hope you find it useful.
Re. your question, you are the only one who can answer that. We have a lot of finance experts around here who’d answer your questions. However the answers will only be as good as information on hand. Given that your question only have limited information, I would answer it from my perspective ie. if I were in your shoes, I will buy her out because of the following considerations:
1. I am confident with my finances, there will be no surprises in the next 1 or 2 years.
2. I have enough money to cover the stamp duty, mortgage refinancing fees and other costs.
3. I have enough reserves, for example if the flat is vacant for 2 months or so, I can cover the total mortgage payments and expenses without too much stressPlease note, the above is specific to me and my finances.
Just my 2 cents
Cattleya
(On this website to learn and exchange ideas with other fellow investors. Not trying to sell anything, though also not preventing any professionals on here from selling their services. Hence I try to be impartial but always welcome any further clarifications / discussions on the topic.)Cattleya
Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.
Keep in mind the benefit of buying her out (rather than selling and then buying somewhere else) is going to be you will be saving sales costs (eg agent fees) AND the cost of stamp duty buying somewhere else.
The real question is…..seeing she is your ex do you think you can actually agree on a price…..
If you can then offer her 50% of this sales price less 4% sales costs. eg if you both agree the property is worth $500,000 then you should be offering her $230,000 cash as a buyout offer.
I’d be very surprised if she says yes though and you don’t get into an argument over what it is…./isn’t worth :(
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