Finally Investment!

Discussion in 'Investment Strategy' started by rezaghp, 1st Feb, 2019.

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  1. rezaghp

    rezaghp New Member

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    1st Feb, 2019
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    Location:
    Sydney
    Hi,
    After 4 years of stretching myself and paying 4k a month mortgage for a big house in Sydney's north shore, which is now the same price as it was 4 years ago, we finally decided to sell it out and get into investment.

    I have learnt a lot by reading this forums so far on commercial investment, subdivision, etc.
    Just wanted to thank those who genuinely spend time and put tips here.
     
    rezaghp, 1st Feb, 2019
    #1
    VB09 likes this.
  2. TMNT

    TMNT Well-Known Member

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    hmmm
    The opportunity cost of selling a ppor to convert to ip is generally quite costly
     
    TMNT, 2nd Feb, 2019
    #2
  3. rezaghp

    rezaghp New Member

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    True but we don't have much options left. If I rent it out still need to add around $1k/m to cover the mortgage + other costs. If I sell it I will have 200k cash in my hand that I can work with. Was thinking to move out of sydney and live it Brissy.
     
    rezaghp, 2nd Feb, 2019
    #3
  4. hammer

    hammer Well-Known Member

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    If you can get similar pay in Brissie you could easily go from having 800k+ PPOR debt to 300k.

    Without investing or doing anything complicated you end up a country mile ahead of where you were before .....
     
    hammer, 2nd Feb, 2019
    #4
    rezaghp likes this.
  5. Trainee

    Trainee Well-Known Member

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    Depends on the job. Some industries dont exist in brisbane.
     
    Trainee, 2nd Feb, 2019
    #5
  6. Trainee

    Trainee Well-Known Member

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    Was this the plan all along? Or did something change? What was the plan in the beginning? Steps should be based on a plan, not we didnt make money for 4 years so maybe brisbane will be better.
     
    Trainee, 2nd Feb, 2019
    #6
  7. ashish1137

    ashish1137 Well-Known Member

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    Well
    You should know that now is a bad time to sell and Sydney might start going up in 1-2 years.

    I would suggest holding to the poor
    At least for capital gains exemption.

    Regards
     
    ashish1137, 2nd Feb, 2019
    #7
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    This can be good, and like a strategy post I recently wrote. But if Sydney rebounds you could be missing out on a few hundred thousand in tax free money.

    Have you thought about renting the property out, saving some tax with negative gearing, and selling it in say 5 years time?

    See

    Strategy: Take a Wage Haircut and Move to a cheaper area Strategy: Take a Wage Haircut and Move to a cheaper area

    Tax Tip 190: CGT Strategy Wait 5.5 Years Before Selling the Old Main Residence https://www.propertychat.com.au/community/threads/tax-tip-190-cgt-strategy-wait-5-5-years-before-selling-the-old-main-residence.36905/
     
    Terry_w, 2nd Feb, 2019
    #8
  9. rezaghp

    rezaghp New Member

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    Location:
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    Not all properties are equal when it comes to renting out. This particular one is hard to find ongoing tenants for as it's a big house, has relatively high maintenance costs and needs a lot of monthly cash to level up the mortgage and rent price.
     
    rezaghp, 4th Feb, 2019
    #9