Forum Replies Created
Excellent post K&R…..
It really depends on your desries as others have said. Each of those options is ascertainable, its all up to you which way you go, and what you want to acheive.
Myself, i am just putting the finishing touches on our first subdivision of my PPOR…… i got lucky and sold the rear block off within a week of getting the permit. However, not all roses, as cash flow is a serious problem when you are doing a subdivsion for the first time, as you cant access those funds until settlement, something that has made it a struggle for us, and we done as you suggested and refinanced the full block to get us through.
Its been a very worthwhile experience though, as we sold the block off for $87,500, and the front block with house will be valued at $240,000, after purchasing the entire block for $228,000. In any case you dont have to sell the block, you could use it as equity if you wish to avoid CGT. I am planning to do many more now that we will have surplus funds, but next time i may not have to sell so hastily.
So it worked for us, its all acheivable, its just depends on your circumstances. Good luck with it all[biggrin]
Micasa
My opinion is that you need to look at +ve cash flow properties. I am yet to hear someone such as Steve or Rick promote -ve gearing. The idea of investing is to help reduce your workload, not increase it. Capital gain is marvellous, but not if you have to kill yourself for it for the next 20 years, in my opinion.
Anthony
Thats a great question, and one that i was about to ask as well, but you beat me to it. Havent had a chance to grab a wrap kit yet, but i am sure this will help in this regard
cheers
Anthony
