Hi,

I can relate to your situation as I have 2 IPs that have lower gearing than my PPOR.

There are a few things you can do to strip equity of the property but there is a limit if you want to reduce the CGT payable as well as other fees.

One thing you could do ( depending on whose name the rental prop is in) is sell the IP to your partner at…[Read more]

Hi,

I would like to put an IP that I own into a Trust as well. where did you get the info about the duty if you dont mind?

Are you referring to the fact that if the sole beneficiary of the trust is the existing owner there is not stamp duty?

Hi,

The ‘cashbond’ strategy sounds interesting, however this is just relies on the principle that depositing funds into an offset account will reduce interest paid isnt it?
I still am undecided about whether to sell the IP or not. My latest thinking is to keep as long as possible and possible sell to a Trust with my wife as beneficiary ( she…[Read more]

Hi AD,

I appreciate your post, it has given me further encouragement.

I still haven’t decided whether to sell the IP or not. I dont know if you are familiar with the area, but it is in glenmore park ( near penrith).
It has experienced significant growth in the last few years ( about 16% last year) but I am concernced that becasuse it is quite a…[Read more]

Hi,

Thanks for the advice. However. one thing is troubling me. I have already had 2 people say that I should refinance the investment property and access the equity that way to pay some of my PPOR off. This, in my opinion is a worse position as I would have to pay fees to refinance and the funding that I would get access to is NOT tax-deductible.…[Read more]

Hi,

In relation to vacant land, it is possible.
Spoke to my accountant (wife) and the ATO. However, there are conditions.

Anyway, the main reason for my post was to discuss the arguments for and against selling an IP to pay down debt on PPOR.

Any views/help would be greatly appreciated

Hi Guys,

Thanks for replying.
Just for further background, I work in the finance industry and understand investment principles quite well. The main dilemma I have is that my wife is attached to IP1 as it was her first investment property and then also we grit our teeth at the fact that we would pay alot of CGT.

The LVR on IP1 is about 0.38, on…[Read more]