Using equity to buy property
Hello
I am just after some advice regarding our situation. I am very new at this and am not sure how it all works. We purchased our first property off the plan as first home buyers which settled August 2009. We have set the loan up as interest only from the start and always had in mind that we would only live in the property temporarily and then convert it to an investment property once we leave Darwin. We have already got about $90,000 equity in the property and are now considering purchasing another property in Darwin before we eventually move interstate. The plan is to move in and do a reno, then move out and rent it out.
Can we use the equity in our property to purchase another property which we will live in temporarily without having to pay capital gains tax on it?
I really haven’t got my head around this at all.
Any advice would be greatly appreciated.
Cheers
Darwinite.
Hello
I am just after some advice regarding our situation. I am very new at this and am not sure how it all works. We purchased our first property off the plan as first home buyers which settled August 2009. We have set the loan up as interest only from the start and always had in mind that we would only live in the property temporarily and then convert it to an investment property once we leave Darwin. We have already got about $90,000 equity in the property and are now considering purchasing another property in Darwin before we eventually move interstate. The plan is to move in and do a reno, then move out and rent it out.
Can we use the equity in our property to purchase another property which we will live in temporarily without having to pay capital gains tax on it?
I really haven’t got my head around this at all.
Any advice would be greatly appreciated.
Cheers
Darwinite.
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