here's a what if?

What if you won a queensland house with river frontage worth 1.4 million dollars.

Would you sell it and buy a number of smaller house with a good rental yield? Would you hold onto it, try and rent it out, borrow against it and invest that money?

What options would people use to maximise the use of the 1.4 million worth of property.

(I havent won but I'd like to think through the different scenarios)

 

I'd live in it and borrow against it to boost my investments up a notch!

 

I don't have an answer, I'd have to research the demand for million dollar properties on the Gold Coast.

Assuming there is no CGT, I'm pretty sure there isn't... I'd probably sell.

 

Keep it as an IP.
Borrow against the equity to the max, put half of the LOC money towards a 50% borrowing in income producing and growth managed funds - margin loan of course (say 70% income producing and 30% growth)....the other half of the LOC would use towards a small townhouse development in my local area !!

 

If you expect this desirable property to increase in value then move in & establish as your PPOR to avoid CGT on its appreciation.

Then borrow against the increasing equity to make other investments.

Rob.

 

Keep it as a holiday house. I would also make this available to my extended family and friends.

I would then also borrow against it and use the money in my current investment endevours. Most probably $1.1mil into a geared managed fund like CFS Aust Geared shares.

Cheers

 

live in it, retire, drawdawn the equity and invest in combination of income.growth funds and live off the income. sounds pretty good to me