Investment plan to pay off PPOR. Feedback please!

You could always wait 5.5. years after moving out and then sell the former PPOR tax free.
That way you get some more growth out of it (possibly).

 

This is a good idea but when I think about this, I think about working at a gas station or department store on Saturdays, since I have no idea how to generate income outside of my regular job and I know nothing about business at all, so for me this advice wouldn't help.

For what it's worth, it is not laziness, but rather I just don't believe I have whatever it is takes to find a way to do this. Some people just seem to kinda have these ideas quite easily so it appears like the path is simple for them to start *something* to at least generate something extra, but whatever it is that makes them understand and see these opportunities, I don't have it.

 

Tutoring?

 

@Terry_w

I had thought of this too as a potential way to maximise the CG without paying CGT on it. My concern with that is that when I move into the new house, I would have a larger non-tax deductible debt than deductible one. If the growth was good though, it would probably be worth sticking it out for 5.5 years.

 

Good on you for getting a decent salary and for doing the very valuable job of teaching.

You may be at max salary, however, it is tens of thousands above the country's median salary so you are in a good position.

Interestingly, I thought teachers were all underpaid - according to the stuff you read in the news? The amount sounds very good to me!

 

Yes that is true, but if the old main residence is growing faster or more than you are paying in interest you may be better off.

Rememeber it is tax free money.

 

Hi @Joynz . I am a leading teaching in a state secondary school so I have extra responsibilities within the school on top of my teaching load. Hence the higher salary. The top regular teacher pay is about $94k. Still quite good but it takes most teachers 11 years to get there.

@Terry_w that's true. Also, the original place would be positively geared at that point and generating some additional income. Will do my number crunching when the time comes

 

@Terry_w could you elaborate on the sale to spouse idea? Would it be possible to sell to my spouse in order to increase the loan against PPOR 1 for tax deduction purposes? I'm assuming tax department don't allow this but haven't really looked into it.

 

I have searched my tips and I don't seem to have written one on spousal sales as a tax strategy.

But I have written these..

Legal Tip 95: Spousal Transfers and Some of the Legal Issues https://propertychat.com.au/communi...-transfers-and-some-of-the-legal-issues.5109/

Tax Tip 50: Minimising duty on Spousal Transfers https://propertychat.com.au/community/threads/tax-tip-50-minimising-duty-on-spousal-transfers.4579/

Tax Tip 68: Transfers Between Spouses and Stamp Duty in NSW https://propertychat.com.au/communi...s-between-spouses-and-stamp-duty-in-nsw.5144/

Tax Tip 100: Transfers between Spouses and CGT https://propertychat.com.au/community/threads/tax-tip-100-transfers-between-spouses-and-cgt.9275/

Tax Tip 101: Transfers Between Spouses and Stamp Duty in QLD https://propertychat.com.au/communi...s-between-spouses-and-stamp-duty-in-nsw.5144/

Tax Tip 102: Transfers Between Spouses and Stamp Duty in the ACT https://propertychat.com.au/communi...tween-spouses-and-stamp-duty-in-the-act.9357/

Tax Tip 103: Transfers Between Spouses and Stamp Duty in VICTORIA https://propertychat.com.au/communi...ween-spouses-and-stamp-duty-in-victoria.9406/

 

That's awesome. Will have a read! Thank you

 

There is a way to accelerate paying down PPOR debt with a debt recycling strategy, needs to be set up correctly though - lots of details go in to 'doing it right'.