In need of some advice on what to do about an inherited property (located in Sydney) I have never owned my own home and know nothing about the property market etc. Not sure whether to sell and buy something and have no mortgage or rent out the property and use it to repay another mortgage? Who can I go to for some genuine advice in person? Thanks.
What's the value of the property your inheriting? Inheriting 300k or 3mil will impact your options greatly.
There is no rush. Take time to explore all your options. A lot depends on the property you have inherited. Sydney is, and always will be, the prime city in Australia, and a "good" property there should perform extremely well. Be careful of paid advisors. Genuine independent advice is hard to identify as most people have inherent preferences. This is a property forum, most will advise to stick to property. Ask on a share forum and most would probably advise shares. Good luck! Marg
I think you should try and find an independent advisor to have a look at your affairs - somebody who is not selling stuff (or getting a success type fee like a %). And take lots of time. This is an inheritance.
Who ever you see, use them for advice only and make it clear that you won't be using them to implement any suggestions. That should ensure that any advice is genuine and not distorted by the promise of further sales. Don't let them talk you into off the plan property, either.
It might be best to sell it - was it the main residence of the deceased? Use the cash to buy one you want to live in and then reborrow to invest.
Understand the tax implications of inheritance. What is its costbase ? While it may be worth $900K does it come with a tax problem ? Some do. In some cases you inherit at market value and in other cases its the cost of the property that the deceased purchased it for. Your $900K property may be worth less when the tax is allowed for
New property that's still being built - possibly not even started yet. It's usually apartments, and the advisor would get huge commissions for selling it to you.
Yes it was the deceased main residence. Thankyou, this is what I'm leaning towards and maybe gain some more knowledge and understand of investment properties and then go from there. If I'm able to sell at market value I could potentionally own a home and buy another investment later down the track.
You seek tax advice from a lawyer or a tax agent. Sounds like it may be exempt from CGT if sold within 2 years of death.
If you have emotions and attachments, which seems is probable, I would say get tax advice and sell & look at paying off house and investing, either in a property you can rent and not care so much about, or other..... As others say, take your time, get advice from a few people.
I would speak with a lawyer and your accountant/tax advisor. Take your time and think about what you would like - you have said sell and buy another home + IP maybe look at this as the preferred path but get an understanding of what costs are involved both on selling, purchasing and holding. Also look at what other options there are for you, one might be just to hold it and rent it out and enjoy 'free' income. As Terry mentioned you are likely to not have to pay CGT for 2 years but best to speak with a professional on your exact situation. If you were looking at investing I would spend more time reading posts along with reading books, this will set you up with a good baseline. However investing isn't for everyone as it isn't glamorous until you get the to the outcome and it worked well but with investing nothing is 100% guaranteed.
