Hi All
I have spent days reading through threads and learning so many things and am now putting my situation out there looking for advice.
Husband and I bought PPOR in 2007 only in my name for 180k (his job was casual and he hasn't been there long enough)
It is a small 3 bedroom place a 15 min walk from the beach with about 10k worth of work to be done to sell it for approx 250k. Or rental price with the 10k spent would be 280+ pw.
We are looking to move into a new PPOR with a buy price of 400k. We have two children and planning a final third in the next year. We need more space, staying here long term is not really an option.
Until I started reading this forum we were going to finish paying this house off (would take approx 2.5years from now) then sell for 250, buy for 400 and have roughly a 180k loan which we would then pay off again ASAP (approx 5 years in total).
Once that was completed in 7ish years we would look into investing. Both have stable jobs although lowish income of 90k combined although I work in not for profit so already pay little to no tax.
Now I am wondering if we should try and hold onto current PPOR with the same plan - it is a block of 650m2 so potential to develop down the track given location. We are in the suburb adjoining a beachside suburb where a lot of developing is happening.
Given that the PPOR is in my name, is it possible to sell the house to my husband for market value and then have a neaturally geared IP that we would potentially develop later on? The cost of stamp duty would almost equal the cost of selling the house in our first scenario (I'm assuming approx 10k in REA fees to sell) and we would go into the new PPOR with the same deposit but in the end run have two houses rather than one. This seems ideal - what am I missing?
The rent of 14k per year would cover the 12k in interest repayments so with property fees etc this seems like it would be classed as neutrally geared?
Sorry the post is so long! Also current loan is just a normal P&I loan that we have poured all spare money into so no offset etc unfortunately. We don't have any other debt.
Obviously if we decided to go ahead with something like this we would seek professional advice I'm asking in more of a WWYD scenario.
Thanks!
Emma
I have spent days reading through threads and learning so many things and am now putting my situation out there looking for advice.
Husband and I bought PPOR in 2007 only in my name for 180k (his job was casual and he hasn't been there long enough)
It is a small 3 bedroom place a 15 min walk from the beach with about 10k worth of work to be done to sell it for approx 250k. Or rental price with the 10k spent would be 280+ pw.
We are looking to move into a new PPOR with a buy price of 400k. We have two children and planning a final third in the next year. We need more space, staying here long term is not really an option.
Until I started reading this forum we were going to finish paying this house off (would take approx 2.5years from now) then sell for 250, buy for 400 and have roughly a 180k loan which we would then pay off again ASAP (approx 5 years in total).
Once that was completed in 7ish years we would look into investing. Both have stable jobs although lowish income of 90k combined although I work in not for profit so already pay little to no tax.
Now I am wondering if we should try and hold onto current PPOR with the same plan - it is a block of 650m2 so potential to develop down the track given location. We are in the suburb adjoining a beachside suburb where a lot of developing is happening.
Given that the PPOR is in my name, is it possible to sell the house to my husband for market value and then have a neaturally geared IP that we would potentially develop later on? The cost of stamp duty would almost equal the cost of selling the house in our first scenario (I'm assuming approx 10k in REA fees to sell) and we would go into the new PPOR with the same deposit but in the end run have two houses rather than one. This seems ideal - what am I missing?
The rent of 14k per year would cover the 12k in interest repayments so with property fees etc this seems like it would be classed as neutrally geared?
Sorry the post is so long! Also current loan is just a normal P&I loan that we have poured all spare money into so no offset etc unfortunately. We don't have any other debt.
Obviously if we decided to go ahead with something like this we would seek professional advice I'm asking in more of a WWYD scenario.
Thanks!
Emma
