All Topics / Help Needed! / How do i use my equity to invest in IP

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of abeeabee
    Participant
    @abee
    Join Date: 2007
    Post Count: 4
    June 5, 2007 - 11:01 am

    Hi all,
    Need some advice , new to investing i have a IP negative geared owed 320k value 580k also PPOR owed 240k value 1800k i have plenty of equity thanks to the perth property boom but not enough income to go any further should i sell the IP to pay of the PPOR and then invest in another IP how do i use my equity to its best advantage.

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674
    June 5, 2007 - 11:36 am

    If you sell the IP you have to pay capital gains tax and stamp duty on the next IP you buy.

    Something to think about –
    You have 1560k in your PPOR that will not attract CGT and unused equity that you cannot access due to having not enough income to service any more loans.

    Recommend you read Steve Mcknights book regarding negative gearing compared with positive gearing and how to tap into fully releasing unused equity.

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.