Hi,this is this first time I’ve done this,even though I’ve been recieving newsletter a few months now.Here goes…
My home is in Ellenbrook,WA(5×2).I was told I could get $200,000 if I sold and I owe $100,00 to bank.A friend of mine has a property in Bassendean,WA.It’s a big long block which has 3 home on it,my friend,her mum and one at the rear which they both own.The mum wants to sell her share,so it’s up for $220,000.My friend dosen’t want to sell for at least 3-4yrs.I was thinking if I used $55,000 equity from my home and have a 1/4 share in the property,live in it and rent my house.I don’t know if it’s a good decision or not,can anyone give any imput.
Regards,LisaLisa, you could do that. Do you really want to move out of your house? Could you instead rent out the one you’re looking at buying the 1/4 share in?
BE CAREFUL how you set the deal up with friends – it’s great when you are friends, but not so great if something ‘unexpected’ happens and suddenly you are not friends.
If you do move into the other, I would get good tax advice about CGT etc. etc.
Your loan on your PPOR would become tax deductible, although presumably it will be +ve cashflow and therefore taxable.
Cheers
Mel
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