Hi,
Bit about myself first. I have been living in the UK since 2007 and am planning to come back to aus and settle in sydney towards the end of 2011. I own two properties in canberra:
Property A - principal and interest, owe the bank around 290k and would now sell for 400k. Also i wouldnt have to pay stamp duty as this property used to be my PPOR. Current mortgage around $1800 p/m and rent is $420 p.w.
Property B - Interest only, owe the bank around 360k and could sell for around 390k. Mortgage around $2100 p/m (it will go down a bit in october once my fixed term @7.55 finishes!) and rent is around 400 p.w.
When i come back to Aus my wife and i are planning to start a family so i will be the sole earner. I would probably earn anything between $100k - 160k. We are planning to settle in Sydney and i want to buy a house around the $550k mark. I have read into some reports that house prices will stagnate in Canberra. Based on this i am considering selling property A. The way i see it i have a few options:
-Sell property A, use half the money to buy an IP in the UK (fairly good rental yields and i believe good potential for capital growth within next 4-5 years), I could easily find a +ve geared IP in london. I could then use the rest to the money from sale of propertyA to contribute to down payment of house in Sydney.
- Sell property A and use all the money to put down a sizeable deposit on Sydney residential property
- Hold both properties as Property A is pretty much paying for itself and property B wont deliver a good return. Settle for a cheaper house in Sydney and sell Property A in 2013 as after this i would be liable for capital gains tax.
What do you think is the best option and why? would love to hear some opinions from the gurus. Apologies for the length of the post, couldn't really get my point across without explaining everything in detail
Bit about myself first. I have been living in the UK since 2007 and am planning to come back to aus and settle in sydney towards the end of 2011. I own two properties in canberra:
Property A - principal and interest, owe the bank around 290k and would now sell for 400k. Also i wouldnt have to pay stamp duty as this property used to be my PPOR. Current mortgage around $1800 p/m and rent is $420 p.w.
Property B - Interest only, owe the bank around 360k and could sell for around 390k. Mortgage around $2100 p/m (it will go down a bit in october once my fixed term @7.55 finishes!) and rent is around 400 p.w.
When i come back to Aus my wife and i are planning to start a family so i will be the sole earner. I would probably earn anything between $100k - 160k. We are planning to settle in Sydney and i want to buy a house around the $550k mark. I have read into some reports that house prices will stagnate in Canberra. Based on this i am considering selling property A. The way i see it i have a few options:
-Sell property A, use half the money to buy an IP in the UK (fairly good rental yields and i believe good potential for capital growth within next 4-5 years), I could easily find a +ve geared IP in london. I could then use the rest to the money from sale of propertyA to contribute to down payment of house in Sydney.
- Sell property A and use all the money to put down a sizeable deposit on Sydney residential property
- Hold both properties as Property A is pretty much paying for itself and property B wont deliver a good return. Settle for a cheaper house in Sydney and sell Property A in 2013 as after this i would be liable for capital gains tax.
What do you think is the best option and why? would love to hear some opinions from the gurus. Apologies for the length of the post, couldn't really get my point across without explaining everything in detail