A crazy idea

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From: H T


Folks

I had this idea that since the market is so hot that now is a good time to sell our fully paid primary residence and just rent for a while.
Reasons are..
I believe that the market simply cannot get any better and that we're in for a period of stagnate growth figures sometime in the not to distant future

there is plenty of rental properties available that ive seen in my inner suburb, some that have taken 3 MONTHS to rent

sure ill miss out on cap growth, but we have about 1.2m in investment property and after seeing some inner suburbs grow 100% in 2 years, I just can't believe that this growth rate can be sustained.

HT
 
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Reply: 1
From: Robert Forward


Since you have a PPOR, why not just move out and rent that property out for a number of years. It will still be CG exempt for a number of years (I think it's 6, I saw that in a post somewhere below but someone will correct me if I'm wrong).

At the moment you are paying 6-7% interest rates on your Primary Place Of Residence, but if you rent at the moment IP investors are pushing to be lucky to get 4% on inner city properties.

But anyway, check out this calculator. It's a Rent v's Buy calculator that may help you decide.

http://www.amp.com.au/au/ampweb.nsf/Content/C+Calculators

To find the calculator go down in alphabetical order. There is also heaps of other good calculators in amongst that lot too.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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