Hi, I’m considering selling my current property, and purchasing another property for the same price but pays twice as much rent. However, I don’t want to make a purchase and hope for the best! I want to know exactly what the numbers are, but unsure how to do it. So here are the details.
Current property:
Original Purchase Price: $82,000
Approx Sale Price: $280,00 (probably a bit low, but don’t want to be too confident!)
Current mortgage: $81,000Potential property:
Purchase Price $310,000So, what I want to know is, how do I figure out all of the costs associated with:
1) selling my current property
2) Capital Gains Tax (I’ve had the property for 5 yrs, and rented it out as an investment property for 3 years)
3 ) Purchasing new propertyAlso, if I do sell, it will be selling a unit in Perth and purchasing a house in the country. Does anyone think this is a wise move?
I would really love some professional advice, in particular on the numbers side of things.
Regards,
Holly
0404155379Hi I am wondering why you are not using the equity in the first property to purchase the next property so then you will have both.
I would think the first property would be positive geared so even if the second property wasnt covering itself the first would help. I guess it also depends on your income as to whether you can contribute to service if you need to.If you dont sell the first one you wont have to pay the capital gains at this point anyway
Wayne Skewes
Mortgage Broker
Email [email protected]
http://www.eaussie.com.au/Mortgages/Aussie_Mortgage_Adviser.asp?ContentID=852280
Refinace, Loan Consolidation, Owner Occupied or Investment Finance. Free Service I come to you!Yeah ultimately I would like to do that, but I don’t think I could afford it. I am currently a student at uni, and may start full time work in a couple of months, but my income will only be $31,000 pa if I get the job. The rent on my current property is $200/week, which covers the mortgage payment and a little bit more.
The property I’m considering purchasing is currently rented for $450 and is in a lease until 2010.
I just don’t want to borrow too much as everything is uncertain at the moment. Or am I just being a wimp?
ok you said you have had the property for 5 yrs and rented it out for 3? did you owner occupy it for the first 2? if so speak to your taxation professional or Terry W from this forum re nil capital gains payable due to the owner occupation. I would suggst this is the case but not knowing your situation exactly I won’t speculate.
If you are wondering about finance there a quite a few brokers on this site who can assist should you need it.
Stu.
Stuart Milne
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