I bought a house in Western Sydney in 2009 for $280k. With recent planned changes to zoning, the house will be sitting on med/high density land very soon. I've been approached by an agent who has an adjacent block (at the rear) about to hit the market and would like to list both together to achieve a higher price. He thinks the property, sold together, would be worth about $800k each. Maybe optimistic, but he did have comparables to back it up. Now to sell, I'd be hit with over $100k of CGT. On the other hand, if I were to refinance, I can't see how a valuer would come anywhere close to $800k. Realistically, more like $400-450k (a 'normal' house price for the area) which would limit my next move.
I am still bullish on prices in this area, but I can't see there being much chance of another big jump like this. More likely just a steady rate of growth. If I were to sell or refinance, I would use the funds to buy similar properties in other areas that are yet to be rezoned.
In a bit of a bind. $100k is a load of cash to be paying in CGT. Thoughts?
I am still bullish on prices in this area, but I can't see there being much chance of another big jump like this. More likely just a steady rate of growth. If I were to sell or refinance, I would use the funds to buy similar properties in other areas that are yet to be rezoned.
In a bit of a bind. $100k is a load of cash to be paying in CGT. Thoughts?