Dear all
Can anyone advise me of pros & cons of selling a house I live in in Campbelltown, Sydney, and buy two houses in the country area of NSW?
I stand to make a good profit on my home in Campbelltown when I sell it, as I purchased it for a good price in 1997. However, I have a fairly expensive mortgage on the property and am not a young person, being in my early 60’s and just retired [xx(] so my idea is to sell and get rid of my mortgage and buy two cheap houses in the country area, say, for $60,000 each and live in one and rent the other. I would then renovate the one Im going to live in to a fairly high standard and make the rental property comfortable for a tenant. It wont make me rich but would give me a small income and perhaps the prospect of being able to sell the second house for a profit later on. What I’m wondering is if I hang on in Sydney for a couple of years longer, I might make a better profit on my existing house and the country prices might calm down a bit, so that I come out of it with more money to invest – OR – do I run the risk of my present house price flattening out and even dropping and lose the chance to sell at a good price if I dont sell soon? Would appreciate advice one way or t’other!
Cheers and good luck, everybody – the forum is fascinating to read. I wish I were a bit younger – Id be right into this, but security rears its ugly head as you get older[
]Gday delyse,[
]i think thats a great idea but…
if you could give everyone a little more info it would be easier to give an opinion.
maybe some info like…..
1. how much is your house worth [?]
2. where do you want to buy in the country [?][
] Powmow []
Depending on the location of your property (most Sydney real estate is expensive) I believe you would be better off keeping your current property because that would increase more than a country property. Property prices may slow down in some areas (country) but good locations in the city will hold their value.if you have enough equity in your current home perhaps you could purchase a country property (cheaply) and rent it out so that it would pay the mortgage repayments. Good luck.
Don’t worry too much about the money. Do you love the country? If, so move there and you will probably be debt free with a little income.
Nu Gen
I would be careful about selling the existing property, as this may have implications in terms of the age pension (if you are receiving it). You get an exemption for your place of residence, but if you acquire 2 cheaper properties you may breach the assets threshold & lose your pension. Check with Centrelink or your accountant.
Hi Delyse,
>>It wont make me rich but would give me a small income and perhaps the prospect of being able to sell the second house for a profit later on.<<
I would think it would be better to eventually sell the one you have been living in rather than the one which you have ben renting out as in that case the gain isn’t taxable !!
Cheers,
Pisces133
]
]
] Powmow [
You must be logged in to reply to this topic. If you don't have an account, you can register here.
