We own 3 IP and have a mortgage on our home . 2 of the IP are neg geared and one is Pos geared. Would we be best to sell the two neg geared IP and pay out our home mortgage and just keep the pos geared IP even though it would still have a mortgage?[confused2]
What are your goals in all of this? Where do you hope to be in 10 years time with your property investing?
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked! 6.85% Rate!!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi Simon
Thanks for taking the time to answer my question.
We just want to free up some cash flow as next year we will have 2 Uni students to support. Maybe we should just sell our block of land as it doesn’t earn us anything, just costs us. Then pay the profit from the sale onto the other IP (rented)to make it Pos geared. What do you think? In answer to your question, we are trying to become financially independant.
Thanks
[confused2]Hi Lotus,
I would suggest you place the cash in an offset account attached to the non deductible debt on your home loan, this will enable you to have access to the cash as you need it and help minimize your PPR debt.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
You could sell your negative geared houses. Would you have capital gains tax? have you had much growth in your houses. you could sell you block.
another alternative if there is too much tax from selling your neg geared houses, is to sell your home tax free and move into one of the negative geared houses.
could you do a cheap renovation on the 2 neg geared houses and try to get more rent from them.
you want to become financually independant, so hold onto what will help and sell what will not. If you built on the block that you have would that be profitable to sell? Would it be posative geared if you rented it? Would you live in it and sell your current home? or move in and rent your current house?
heaps of options, you just have to nut out which one is going to help the best for you next year and for your future goals.
buy more pos geared houses.
Seano
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