Please forgive the slightly long post. I’m seeking some thoughts on what might be my best strategy going forward from my current position. My goal is (not unusually) to attain a level of financial independance that will allow me the freedom to travel.
I purchased a house (my PPOR) just over 12 months ago. The property was purchased for $275000 including all settlement costs and is currently valued at around $350000+. If I sell using an agent I can expect to reap a CGT-free profit of around $65000 after all costs are taken out.
Should I sell and purchase a smaller place more suited to my personal needs and use the additional cash to begin an investment portfolio or are there better ways to access the increased equity in the current property. I am concerned that by selling now I may be selling during the early stages of an up-swing in the local market (Cairns) and may just end up forgoing a much greater profit.
Any thoughts?
Cheers,
SteveHI, I’m no expert but I know big developments are about to get under way in Trinity Beach( $800 million development) so if its in a great location think about using the equity to buy another property.[
]I second that
Why would you sell a good investment when you can access the equity cheaper and still retain control of the original property?
I’m not about to pay the government more stamp duty than I absolutely have to… [
]Good luck!
Quasimodo
Please forgive the slightly long post. I’m seeking some thoughts on what might be my best strategy going forward from my current position. My goal is (not unusually) to attain a level of financial independance that will allow me the freedom to travel.I purchased a house (my PPOR) just over 12 months ago. The property was purchased for $275000 including all settlement costs and is currently valued at around $350000+. If I sell using an agent I can expect to reap a CGT-free profit of around $65000 after all costs are taken out.
Should I sell and purchase a smaller place more suited to my personal needs and use the additional cash to begin an investment portfolio or are there better ways to access the increased equity in the current property. I am concerned that by selling now I may be selling during the early stages of an up-swing in the local market (Cairns) and may just end up forgoing a much greater profit.
Any thoughts?
Cheers,
Steve___________________________________________________________________________
We are all but half formed images of our true potential.
___________________________________________________________________________Gday FNQ 2002, l think you need to find out how much your PPOR is worth as a renter against the size of your current loan payments inc rates etc this will give you an idea of affordability.l would imagine if you rent it these payments become deductable against the loan.You have equity if you x coll this and your new PPOR but can you meet the lending requirments of two loans in a lenders eyes? MITCH
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