I own (or should I say the bank) owns my house in Perth, WA. The home (PPOR – 50/50 joint tenant with my wife) is probably only worth $350-380k but my loan in around $430k (negative equity due to downturn). I need to progress forward somehow but can't seem to see the forest for the trees (so to speak). What are my best options?
My sister in law is in the same situation … Answer pay extra into the loan … sell and pay back loan then start again … renovate to add value to raise valuation … sorry s..t happens thats life hang in there another 10 years will help you.
That is definitely an option. What would be the situation if I moved out and used this property as an investment? Is it better from a tax perspective. I am on a large salary which attracts a large tax bill.
Yes renting the property out and then in turn renting yourself is an option.
Remember however that the deductions can only be claimed in the same percentage as the ownership so in this case 50/50.
If the property is fairly new you might get some good non cash deductions by the way of Depreciation or Building Write off.
Convert the existing loan to a interest only loan with 100% offset account and then look to use an alternative lender when you buy a new PPOR otherwise cross collateralising a negative equity position will cause you endless issues.
Richard Taylor | Australia's leading private lender
Hi Brandira,
I also am in perth and looking to purchase my first property and was just curious as to which area the house is in?
Please let me know.
Regards,
Brandira wrote:I own (or should I say the bank) owns my house in Perth, WA. The home (PPOR – 50/50 joint tenant with my wife) is probably only worth $350-380k but my loan in around $430k (negative equity due to downturn). I need to progress forward somehow but can't seem to see the forest for the trees (so to speak). What are my best options?
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