I have a property that was originally a rental and we have been living in it ourselves for the last 2 years and made some capital improvements. I own it freehold. Should I sell this with approx profit of $200k plus CGT approx $30k, while the improvements can be used to offset some CGT? If I hold and rent out again (at approx $180 p/w) will those offsets be ‘lost’? If I sold, I have other money for a deposit and then maybe one of those whizbang interest-free loans, so that I can use the profit from this place for further +CF properties. Or maybe staying in it but using the equity for other properties????….help!!! I’m confused.
Hi Abby,
Owning outright an asset such as you do puts you in the enviable position of having a number of options available to you.
1. Remain in the place and use the equity on as deposits on other properties.
2. Use this place as a rental, rent somewhere else and use the equity as per suggestion one.
3. Use this place as a rental, buy somewhere else and use the equity remaining as deposits per suggestion one.
4. Sell and realise your gains and move onto something else – either other rentals or a new PPOR.Ultimately it comes down to what do you want to do in the short and long term and how can this property best help you to achieve that aim.
Just realise that buying a new PPOR will mean that you are taking on a new non-deductible loan (interest fee loans aside) and is probably not the best suggestion – subject to your family goals.
Derek
[email protected]Property Investment Support Available.
Derek – Thanks for your information and suggestions. It has given me some excellent options to consider.
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