Hello
Hoping someone has been in a similar situation and can shed some light on the best option.
My wife and myself bought an investment property around 4 years ago for $320k and is now worth around $400k. We are planning on having kids next year so ideally I want to sell the place before we go down to 1 wage. We can afford the loan while there is a tenant but I am mindful of the financial stress it may cause if there is any lapses in a tenant change over, plus also losing out on any negative gearing on my wife's share of the property while she is not earning a normal wage. So basically I am tossing up between two options:
a.) Sell the place the financial year after we have kids to reduce to capital gains on my wife's half as she will not be working. The issue with this is from the online calculators it appears that it would seem to wipe out any family tax benefit we would receive.
b.) Sell the house prior to having kids and cop the capital gains bill.
Has anyone else been in a similar situation?
Hoping someone has been in a similar situation and can shed some light on the best option.
My wife and myself bought an investment property around 4 years ago for $320k and is now worth around $400k. We are planning on having kids next year so ideally I want to sell the place before we go down to 1 wage. We can afford the loan while there is a tenant but I am mindful of the financial stress it may cause if there is any lapses in a tenant change over, plus also losing out on any negative gearing on my wife's share of the property while she is not earning a normal wage. So basically I am tossing up between two options:
a.) Sell the place the financial year after we have kids to reduce to capital gains on my wife's half as she will not be working. The issue with this is from the online calculators it appears that it would seem to wipe out any family tax benefit we would receive.
b.) Sell the house prior to having kids and cop the capital gains bill.
Has anyone else been in a similar situation?