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  1. #11
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    wow waggers70 - that is a huge loss.

    I just looked up the rental cost per week for our type of home (there is lots of them where we live so few on realestate.com.au already) and our home loan minus the rental income works out $660 out of pocket each month. This is BEFORE all the extra costs listed above are taken out. Probably isn't worth it for us?

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    Default Tell me about keeping your first home and renting it out, and buying something bigger

    Some people tell me that you don't get capital gains tax if you lived in the property then rented it out. My accountant told me that you do get capital gains tax. Also accountant told me if you owned 2 properties and lived in one and left the other empty I would still be up for capital gains tax when I sold 1 of the properties. It's so confusing what is right?

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    SuperGranny is offline Worlds best grandma! Winner 2012 - Most Helpful Member
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    hi, some advice you might get here might not apply in your state. There are some different taxes that only apply in one state and not all. If you have a good relationship with your bank manager, make an appointment to discuss all the options for you. As a guide, you should be able to cover at least one month with no rent, or else you could be very stressed if any tenant runs off. It is a good process to get ahead, we have done it successfully for 30 years or so, but there has been many times with huge stress. Also, the capital gains tax, the best idea is to not ever be in the situation where you Have to sell something. Capital gains in qld is relative to the number of years you have had the property, so make long term plans , not short term. good luck, Marie.

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    My Three Angels  (31-08-2012),nicole83  (31-08-2012)

  5. #14
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    Great advice SuperGranny! I am in QLD too. I have been emailing my mortgage broker and she also said long term investment is better.

    Keep the advice coming ladies

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    Default Tell me about keeping your first home and renting it out, and buying something bigger

    We very briefly considered this as we are quite ahead on our mortgage - also asked our accountant. We basically decided against it because loaning extra money from the bank means you pay a huge huge amount of interest. It is better to stay where you are as long as you can and get the loan down, then sell and buy somewhere else. When you actually OWN your house, then you can look at getting an investment property - although as PPs have said there are drawbacks to investing in property. They say shares are a better long term option. Not to mention all the horror stories I've heard about bad tenants.

    If you want somewhere bigger now is a good time to "upgrade". You may very well lose $$ on your townhouse from what you paid for it, but houses at the higher end of the market have dropped by heaps - so you would be buying a bargain.

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    Default Tell me about keeping your first home and renting it out, and buying something bigger

    Quote Originally Posted by duckduckgoose View Post
    We very briefly considered this as we are quite ahead on our mortgage - also asked our accountant. We basically decided against it because loaning extra money from the bank means you pay a huge huge amount of interest. It is better to stay where you are as long as you can and get the loan down, then sell and buy somewhere else. When you actually OWN your house, then you can look at getting an investment property - although as PPs have said there are drawbacks to investing in property. They say shares are a better long term option. Not to mention all the horror stories I've heard about bad tenants.

    If you want somewhere bigger now is a good time to "upgrade". You may very well lose $$ on your townhouse from what you paid for it, but houses at the higher end of the market have dropped by heaps - so you would be buying a bargain.
    Thank you for your input I really need to sit down and do all the sums. Mortgage broker is saying go interest only for the investment properties loan wait and sell up when the market booms again.But yeah, obviously this is a long term investment.

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    Quote Originally Posted by nicole83 View Post
    thanks for the replies so far!

    Bressar - so had you paid much/a lot off your first homeloan to be in that position?
    We hadn't paid much off but the value of the property had increased


 

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