Loan in Hardship & Selling

Hi GUys

We have been strugglinmg for the last year with my wife losing her job so have decided to off load are least preforming IP.

Whislst we have this on the market I am going to apply for 3 months loan break under hardship reasons and they will add this to the loan total .

When I sell will this count as capital lost ?
 
I can't answer the question but have you considered posting all the details about the property here first just in case you can secure a sale with a super-fast settlement etc, that would help you avoid having to go to the bank cap in hand? Would also avoid agent fees too of course.
 
The interest on the loan will be allowed to capitalise during this period, so your loan will just be increasing. It has no bearing on capital gains as this is calculated on sale price less purchase price and costs.

The extra interest paid will be an expense which comes off income - so you will probably have a greater negative gearing loss. This in turn will save you some CGT in the end as the CG is added to your other income for the year.
 
If the property is now vacant and not being actively on the market for rent possibly the interest will not be deductible gainst income but form part of the cost base for CGT
 
Hi Emily

Have you thought of turning this property into a positive cashflow property? It should be possible if you sell it with Vendor Finance and it can be done quickly. Our record is 13 days from when a couple first inspected the property, to when they moved it.

Sure the property will be sold but it will be generating positive cash flow and you won't have to request "hardship". PM me if you need more information.

Cheers, Paul
 
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