Finally Investment!

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

Join Australia's most dynamic and respected property investment community
  1. rezaghp

    rezaghp New Member

    Joined:
    1st Feb, 2019
    Posts:
    3
    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.
     
    Vishal Bhatti likes this.
  2. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    3,376
    Location:
    Melbourne
    hmmm
    The opportunity cost of selling a ppor to convert to ip is generally quite costly
     
  3. rezaghp

    rezaghp New Member

    Joined:
    1st Feb, 2019
    Posts:
    3
    Location:
    Sydney
    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.
     
  4. hammer

    hammer Well-Known Member

    Joined:
    28th Aug, 2015
    Posts:
    1,880
    Location:
    Darwin
    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 .....
     
    rezaghp likes this.
  5. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    1,494
    Location:
    Australia
    Depends on the job. Some industries dont exist in brisbane.
     
  6. Trainee

    Trainee Well-Known Member

    Joined:
    24th May, 2017
    Posts:
    1,494
    Location:
    Australia
    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.
     
  7. ashish1137

    ashish1137 Well-Known Member

    Joined:
    12th Sep, 2015
    Posts:
    583
    Location:
    Sydney
    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
     
  8. Terry_w

    Terry_w Mortgage broker licenced 4 tax/legal advice Business Member

    Joined:
    18th Jun, 2015
    Posts:
    19,748
    Location:
    Remote
    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/
     
  9. rezaghp

    rezaghp New Member

    Joined:
    1st Feb, 2019
    Posts:
    3
    Location:
    Sydney
    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.