Forum Replies Created
Wow
Seems like I have generated some interest here. Thanks everyone for your input, especially Richard! Terry also makes a very good point about how long it would take to get your money back.
Doing some calculations on the back of an envelope and assuming that I pay stamp duty on the lot then I am up for about 6k in stamp duty if I wanted to increase the borrowings to $180k (plus any other costs).
As I have now increased my investment borrowings by around 80K that is very roughly an extra 5k in interest a year which approximates about $1,250 in the hand at the 30% tax rate. meaning it will take me 5 years to pay for the stamp duty difference.
I have not accounted for the difference in borrowings as the 80K will just got from one loan to another so I don't think it would save any cash repayment wise.
Have I got any of that right?
Thanks Richard!
would this incur stamp duty in the sale of the property?
Can I have a second opinion anyone?
Hi Chris
Canberra just seems crazy to me at the moment, and I am a newbie as I only have one IP and that was my original PPoR but we came to Canberra for work.
Appreciate any thoughts you might have on the Canberra market. Particulary if you think it still has further to run? Any thoughts on the new areas like Gungahlin? (I notice the units in the Gungahlin town centre are now going for $320K plus!).
In English that says 'we also felt this left us some leeway'!
Sorry! Typing too fast…
If you want to be really confused head over to the Somersoft forum where a big debate about investing in the Central coast/Gosford is going on!
http://www.somersoft.com/forums/showthread.php?t=33362&page=2
Thanks very much everyone for your help!
Thanks trajik!
I believe the house was probably worth somewhere around $180k when I moved out. but what sort of evidence would I require to make that a 'taxable valuation' if you know what I mean? Unfortunately it is a bit too late for me to get a qualified valuer to do it now…. one of the classic newbie mistakes I suppose!
Sorry Terry.
Yes I own another property in the ACT and the Ipswich house has been an IP since I moved out of it in 2004. I guesstimate it would now sell for $220-240K.
Hi Andy
Thanks for your comments.
The purpose is certainly not for short term gain. The goal is to hang on to at least some of the land and come out of the deal with a brand new property instead of a 70 year old one, owing about the same as before.
OR, owe more money but keep all the land and redo the 70 year old house to keep it going for a while longer.
As far as I can tell it a lot depends on the cost of building…. something I know nothing about
Thanks Hutch.
The block is 809sqm.
Any other opinions welcome!
