Hi We've recently bought a townhouse off the plan as a new ppor. Its got about 12 months until its built Our current ppor is a 2bd in Wolli Creek in Sydney. Its about 12 years old but still looks and feels as modern as the new places going around the area. There are a huge amount of buildings go up in the area, this one is well place and won't be blocked in. All new units are like 800k+ now We owe about $325k on it, and they are selling in the block for 700ish. The rent potential looks pretty decent, maybe 650 a week The issues are: - I've paid off principal without using an offset account - strata is 1500 a quarter ... Do we re-draw as much as we can, deal with the tax implications and use it as a deposit on the new place? Or sell and walk away with a pretty decent amount to put on the new place? Guess I'm worried I won't be able to re-buy again Thanks for any advice!
Personally I'd hang on to it if you can, so long as you feel the future capital gain prospects are reasonable. You have already paid the entry costs, and the time it is your PPOR will be CGT free. Investigate how to draw on equity to put towards your new PPOR without affecting the deductible loan. There are threads about how you can maximise your future deductions. Look forward ten years or so, and you may be glad you have had two properties working for you. Marg
