Forum Replies Created
all good stuff to chew on, thanks guys.
I need to assess my habitual distrust of any investment outside of property..
To go to the effort of combining 1-3% at best actual dividend cash income received only twice a year with franking credits and negative gearing claims to service the loan isn’t my cup of tea. if the loan is repayed in arrears, then somehow cashflow needs to service the loan, it doesn’t just magically happen each week or month because of franking credits and gearing.
My nuetrally geared investment house on the other hand gives me lots of cold hard cash each, and every week ,and the bank loves me for it.it raises a good point , the ATO gets you no matter what.
CGT is going to 25k in this case [sale-loan /2 x 47%].
So while there is sufficient cash to pay out my PPOR after fee’s+cgt, to save 25K of future interest, i’m really just giving it to them now in CGT .
I suppose i would also save the tax applied to the cash that would service the PPOR loan, which could be diverted to another property and become ‘good’ deductible debt.
Appears to be a dead heat to me, i’ll probably hang on to it and hope for continued small – modest growth in brisbane and expidite PPOR repayment by some other means [not easy with kids!]
