Hello from Dubai & advice needed

Discussion in 'Introductions' started by Repat, 4th Nov, 2016.

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  1. Repat

    Repat New Member

    Joined:
    4th Nov, 2016
    Posts:
    2
    Location:
    Dubai
    Hi guys, first time here (please be kind) & needing advice/thoughts on my situation. We have been expats for a number of years & not quite ready to come home yet but certainly will be in 5yrs. We are not huge money earners so don't have a lot of money to throw around, live below our means, budget & try & save what we can. We have a house almost paid off in Brisbane but looking at selling it & buying a townhouse on the Gold Coast with little to no Mortgage. Reason being is that our daughter is due to move there for Uni next year & also somewhere for us to stay when we come home for holidays. (Sick of wasting money on holiday apartments) Are we crazy selling our house? We could probably afford to use the equity in the house to buy a townhouse & just pay the mortgage ourselves but just hate the idea of having a huge mortgage over our heads again & love the idea of owing something outright even though just a townhouse & having not to worry about if my husband looses his job we can't afford the mortgage. At the same time don't want to do something financially stupid due to fear. Thanks in advance guys. Did I post this in the correct forum?
     
  2. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    Are you currently renting out the house? You are likely to have a respectable rental yield if the house is almost paid off. It's therefore worthwhile looking at what cashflow you would have after insurance, rates and property management fees are deducted.

    Are you able to share loan amount and house size/location so that a rental yield can be calculated? This will allow forumites to provide meaningful opinions.

    Given it was your main residence you may have tax benefits/issues to consider. Someone with tax knowledge will need to chime in ( calling @Terry_w and @Paul@PFI ).
     
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  3. Terry_w

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

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    18th Jun, 2015
    Posts:
    41,672
    Location:
    Australia wide
    Yes many tax issues to consider - CGT (and the 50% discount?), main residence exemption, stamp duty land tax etc.

    What if you helped your daughter buy her own property? She could get the main residence CGT exemption - whereas if you bought it you may not.
     
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  4. Repat

    Repat New Member

    Joined:
    4th Nov, 2016
    Posts:
    2
    Location:
    Dubai
    Thank Wombat777 for your reply. You really are a nice bunch of helpful people on here. House is 1 acre 4bedroom plus study in Greenbank Brisbane. Bought it back in 2003 for 290.000, never lived in it so has pretty much been rented the whole time. Currently no tenants in it as we are doing minor work such as new carpet/paint ect. We were renting it for $425 per week & our Mortgage is $ 35.000. Have contacted Paul via email in case we go ahead & sell. Thanks again
     

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