To sell or not to sell?

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From: Lisa Dawson


Hi, This is Ted & Lisa here. We are newbies to this forum and would love some advice.
We have 3 IP's worth $460k and we owe 300k (IO) and all are positively geared.
Our home is worth 200k and we owe 16k (P&I).
We have just purchased another home to live for 300k (probably a bad move but we love the place). Our dilemma is whether to sell our home which we will not have to pay CGT and pay it off the new place or to hold on to it and rent it out for 230p.w. Would it be better to sell our home ( because there would not be much in the way of tax deductions for interest) and buy another IP which we can claim interest deductions on.
Any advice?
 
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Reply: 1
From: Dale Gatherum-Goss


Hi Lisa!

Congrats on joining us and for doing so well, thus far.

There is no correct answer to your situation.

I hate the idea of you selling despite the tax situation because you are still giving away a large part of your wealth in the real state agents commission on selling, the legal fees on selling, new loan fees and charges, stamp duty and legal fees on purchasing somewhere else. And for what, a stream of income that has tax deductions attached to it.

Reducing tax is good, but, your primary purpose of investing is to create wealth.

Just something to consider.

Have fun

Dale
 
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