Hi,
Just new to this but wondering if anyone may be able to help.
My wife and I currently have 2 units in Perth that we feel have both peaked capital wise. We are wanting to buy a property as soon as we possibly can in the eastern states (most likely QSLD)
Right now our income is low, but hoping for a significant increase with a new job prospect in the next 3 months.
We are wondering what the max is we could borrow right now on the income that we have, and if we are best to sell both places (happy to do) or to use equity. (given Capital gains tax etc)
Here’s the situation.
IP – Current Market Value: $239000
Mortgage: $130000
Current Rent: $165 (could easily be $200 – once lease runs out in May)Second Property (current residence)
Market Value: $255000
Mortgage: $185000Current Gross Income: $43000
We are wanting to buy a house for approx $300 000.
Any advice would be gratefully received.
Thanks very much
Ben.
ps. Should be said that we are not so keen to hold onto either Perth property. We are also wanting to move to QSLD to live in the house that we buy.
Hi Ben
Firstly welcome to the forum.
Don’t put yourself down too much you have some good equity in a couple of properties and you income isnt bad at all.
With the equity you have i cannot see too much of a problem in purchasing a home in Qld (And i must admit i dont blame you for wanting to buy in the Sunshine State) for around $300,000.
On disadvantage is of course that if you intend to move over to Qld and the property will be your PPOR then the interest will not be Tax deductible.
There are a couple of ways of getting round this but comes at some cost and would need more information to see whether it would warrant doing so.
With regards to the CGT you would be liable for would need to know:
1) What the original purchase price and approx date of each purchase Contract for each property.
2) How the properties are held i.e Joint Tenants between you and your wife ?To make further recommendations on your structure I would need to know whether the loans are interest only or P & I and whether the loans are Cross collateralised.
Hear to help.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
