Sell up and rent

From: Darren Beech

would be interested to hear if anyone on the forum has actually sold PPOR to finance more properties?it would make for some good deposits if you had a lump some of say 200k to play with.
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Reply: 1
From: Simon and Julie M

Hi Darren
There is an old Chinese philosophy
"never sell anything of value"
Why not use it in another way instead.
Kind regards
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Reply: 1.1
From: Dale Gatherum-Goss


By selling your home, you first pay off the bank along with any fees that they may charge, next, you pay off the real estate agent for selling your home, then, you pay the solicitor . . . What happens is that you pay off everyone else before you get to play the money.

However, if you leave the existing debt where it is and borrow against the value in the home, you can still use the equity to buy more homes.

My advice, for what it is worth, is to keep the house and use the equity.

have fun and good luck either way

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Reply: 1.2
From: Jeremy Laws

I did. I was forced to sell my hovel due to a massive debt crisis, as the only tax effective one to sell was the one I lived in. I netted about $350k and used it all for minimum deposit properties. I did this about a year ago and have since made about 20% again on each of them. I now firmly believe this is a good thing to do.
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Reply: 2
From: Glenn Mott

I have to agree with Dale here, each time you sell, a lot of other people are taking your cream.

Why not rent out your PPOR and move into a rental yourself, thereby giving yourself another property you can gear into.

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Reply: 2.1
From: Jacque Parker

Don't forget that whilst your house is an asset (even though the loan interest isn't tax deductible!) it's also a home, one for you that may be just right.

The good thing about staying in your own place is the stability of it all. There would be few things worse than finding that perfect rental, only to have the landlord sell up at the end of your 6 month lease. Knowing that no-one can shift you at any time (well maybe the bank, if times get tough!) is a feeling no amount of money can replace. It's about lifestyle too, and living in the NOW as well as planning for the future.
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Reply: 2.1.1
From: Steve Navra

Why sell, when you can draw down 80% of the equity and use that to create further income. enhanced serviceability and for deposits on extra Ip's??

After deducting the sale costs and possible CGT you are lucky if you net the same 80%.

This way you still retain the original asset, kinda your cake and eat it too.


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From: Darren Beech

thanks guys and girls,appreciated your points of view.
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