WE are possibly looking at our first investment property. Had a discussion with mate on the weekend and he suggested in trying to increase our personal property. Meaning sell the house we are in now and buy the most expensive house we can afford. Therefore no capital gains TAX. Our present house is valued at $650k and we owe about $200K. If we were to buy a house for say $800k with a loan of $300-350k would this be a better option. Would like to hear your opinion.
ThanksHi, not sure how increasing your own personal property and therefore loan would be of benefit in buying an investment property. Also selling and buying again means that you will 'lose' a lot of money in stamp duty costs, agents fees etc. if you are happy with your present house keep it and use the equity to buy an investment property. I think you would learn a lot from reading past posts on structuring your finance for the best return on your money.
cheers
Sonya
Hi,
i can understand trying to minimize tax etc but this seems like a waste of money trying to do it. I'm with Sonya, this is the way to try and achieve more property. If you used the equity ion your current property you could have a deposit for maybe 4 cheap properties. Many peoples mates, neighbors, mums and dads are "experts". Unless they have a couple million dollars worth of property please take what they say with a grain of salt. Call an accountant and a mortgage broker and get some real advice. Yes you may have to pay but it will set you up for life.
Good luck stay with the forum and you will learn a lot, I have!
D
DWolfe | www.homestagers.com.au
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