I have a decision to make. Consider my circumstance. As part of divorce settlement my partner and I have decided to transfer the title of our PPOR into my name in exchange for a cash settlement to her. From here I have two options:
1 Keep the PPOR and rent it out
2 Sell it and take what profit is left
After settlement an initial cashflow analysis of the PPOR (converted to an IP)would cost me about $170/ week after taxes and depreciation. The house is in Perth and valued at about $540K. I can afford to hold this shortfall but my problem is this. If I rent out I have an opportunity loss because if I sell I can buy interstate and experience a greater potential for growth. I believe this mid-tier market has stalled and my money would work better elsewhere. But to sell this kind of house in Perth could have me waiting a while and that could cost me 2800/month in interest waiting (wouldnt rent out whilst up for sale). I can also afford this but cant stand losing that much each month whilst the property goes stale.
Has anyone had to make this decision. This is purely a business decision that I am having trouble with. I can appreciate that all markets will one day slow or stall and at those times I will certainly not sell my other property because of this. Please help shed some direction. I am really not sure how to look at the numbers for this.
1 Keep the PPOR and rent it out
2 Sell it and take what profit is left
After settlement an initial cashflow analysis of the PPOR (converted to an IP)would cost me about $170/ week after taxes and depreciation. The house is in Perth and valued at about $540K. I can afford to hold this shortfall but my problem is this. If I rent out I have an opportunity loss because if I sell I can buy interstate and experience a greater potential for growth. I believe this mid-tier market has stalled and my money would work better elsewhere. But to sell this kind of house in Perth could have me waiting a while and that could cost me 2800/month in interest waiting (wouldnt rent out whilst up for sale). I can also afford this but cant stand losing that much each month whilst the property goes stale.
Has anyone had to make this decision. This is purely a business decision that I am having trouble with. I can appreciate that all markets will one day slow or stall and at those times I will certainly not sell my other property because of this. Please help shed some direction. I am really not sure how to look at the numbers for this.