We really need some help in deciding whether to sell the land or the house.
May 2008 - Bought a home to live in (PPOR) for $180 K
Sept 2008 - Bought a land $130 K
With both the purchases, we opted for a loan which has unlimited redraw and repayments but no offset.
Also, both loans are under me and my wife's name.
We did not know the tax deduction implications at that time and hence to save on interest our salaries, bonus,
etc went directly in both loans.
At one stage, the outstanding amounts on home was about 65K and on land it was about 60K.
Now we have bought an established home and settling in late June. This will be our new PPOR.
We need to choose between the following two options:
- Convert the existing PPOR in investment property and sell the land
- Sell the existing PPOR and within 2-3 years build a house on the land and convert it to the investment property.
Which strategy is better from the investment and tax perspective?
Any thoughts and advice will be much appreciated.
May 2008 - Bought a home to live in (PPOR) for $180 K
Sept 2008 - Bought a land $130 K
With both the purchases, we opted for a loan which has unlimited redraw and repayments but no offset.
Also, both loans are under me and my wife's name.
We did not know the tax deduction implications at that time and hence to save on interest our salaries, bonus,
etc went directly in both loans.
At one stage, the outstanding amounts on home was about 65K and on land it was about 60K.
Now we have bought an established home and settling in late June. This will be our new PPOR.
We need to choose between the following two options:
- Convert the existing PPOR in investment property and sell the land
- Sell the existing PPOR and within 2-3 years build a house on the land and convert it to the investment property.
Which strategy is better from the investment and tax perspective?
Any thoughts and advice will be much appreciated.