Confused What To Do ?

I just sold my beach block and made about $40 000 profit, now I would like to invest, but I am confused which way to go. Should I put the money on my mortgage which I owe about $100 000 or should I buy a block for $80 000 and build a house and on sell it as I am a registered builder, which I could do the bulk of the work myself. Or do I buy a investment property for $150 000 to $200 000. I would appreciate any advice. Thanks Jason.
 
I just sold my beach block and made about $40 000 profit, now I would like to invest, but I am confused which way to go. Should I put the money on my mortgage which I owe about $100 000 or should I buy a block for $80 000 and build a house and on sell it as I am a registered builder, which I could do the bulk of the work myself. Or do I buy a investment property for $150 000 to $200 000. I would appreciate any advice. Thanks Jason.

Until you decide what you want to do, put that money into an offset account against you PPOR. This way, you can draw on it at any time & if you decide that your PPOR is to become an IP, you will still get Tax Deductability on all outstanding monies.
 
I just sold my beach block and made about $40 000 profit, now I would like to invest, but I am confused which way to go. Should I put the money on my mortgage which I owe about $100 000 or should I buy a block for $80 000 and build a house and on sell it as I am a registered builder, which I could do the bulk of the work myself. Or do I buy a investment property for $150 000 to $200 000. I would appreciate any advice. Thanks Jason.

G'day Jason,

There are a few hoops/restrictioins to jump through if you're wishing to obtain finance as an owner builder unless you have enough equity in your current property to finance the project.
You would also need to take into account the lost earnings you would suffer whilst completing the project against any profit you would make.

As mentioned, open up an off-set account (if you don't already have 1) whilst you decide what to do and place funds in there right away.


Regards
Steve
 
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