All Topics / Help Needed! / Selling 2 properties

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  • Profile photo of lukey30lukey30
    Member
    @lukey30
    Join Date: 2010
    Post Count: 10
    April 10, 2012 - 6:31 am

    Hi all. Just after a little bit of help/advice

    I have 2 properties at the moment
    1 bedrom apartment in Ascot Vale. Purchased for 170k (Current value 300-320k) (130 owing on mortgage)
    2 bedroom unit in Essendon Purchased for 430k(Current Value 440-460k) (420 owing on mortgage)
    I also have approx 30k in shares.

    My wife and I are looking to build a new home. We have just recently stumbled across some land opportunities that we are interested in. We are currently residing in our 2 bedroom place. In order to be in a position to purchase and settle the land we are interesed in (block will cost 370k) we will need to sell as we won't be able to lend any further money on top of our existing loans.

    Ideally we want to be able to build a house on the land and have an existing mortgage of around 400k

    We have been in our current place for 2 years and the value would be fairly similar to when we bought it.

    Looking for any advice on how to tackle the task of which property to sell first or if at all and whether there is an easy way to structure it so we can acheive our building goal.

    We don't want to sell for the sake of selling, but we are worried that land prices will jump up if we wait too long!

    thanks

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 10, 2012 - 11:02 am

    Hi Lukey

    There are a few considerations and obviously selling one or both properties maybe one of them.
     
    I would however suggest you may wish to sell in your time when the market is favourable so a bridging loan facility might be the best way to go. There are a couple of options here but i see from you original post it appears that your existing loans are cross collateralised and this could be an issue depending on your current lender.

    Nothing to stop you financing the land, constructing the new house and financing the interest whilst you are still residing in the current home subject to serviceabillity. More hard data would be needed here to advise further.

    Then there are potential capital gains issues and the timing of any potential sale contract.

    This will largely depend on the original purchase date and potential other gains / losses.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of KeyStrategiesKeyStrategies
    Member
    @keystrategies
    Join Date: 2011
    Post Count: 155
    April 10, 2012 - 6:59 pm

    Hi Lukey

    Is the land registered? Perhaps you could buy some time if its unregistered or perhaps you could look at a delayed settlement. I have had delayed settlements up to 12 mths after exchange.

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