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Discussion in 'Introductions' started by Jerribel, 10th Aug, 2007.

  1. Jerribel

    Jerribel New Member

    Joined:
    29th Jul, 2007
    Posts:
    2
    Location:
    nEWCASTLE nsw
    Hi
    I'm new to this forum, stumbled on it recently through SS. I'm from Newcastle. I'm in need of advice regarding a way forward. My PPR was built 3 years ago and is much too big for me as my family have recently departed. I have large mortgage and small IP bought last year negatively geared.
    Options
    1 sell PPR and buy something smaller so that I can pay off before retirement (7 years away) and another IP.
    2 Keep PPR and rent out, Buy a smaller property for PPR but won't be able to afford cos funds tied up in current PPR.(Lifestyle issues).

    The thing I struggle with is that when I bought IP last year the bank valued my PPR at exactly the same amount that I paid for it complete with landscaping driveways blinds ect. If i were to sell now I'm worried that I will make no money on it may not break even. would anyone like to offer an opinion on what is the best of these two options. would be very gratful cos i just keep going around in circles
     
  2. TryHard

    TryHard Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    863
    Bank valuation

    Welcome Jerribel

    Don't know NTL market at all, but would suggest you don't base any decision on the bank valuation of your PPOR. Use current sales in your postcode of similar quality (homepriceguide.com.au) or independent registered valuer so you know what you can realistically expect.

    Dunno with 7 years to go if any aggressive change in the portfolio would be justified 'cos of switch costs, chance of nil growth etc ? ... but suppose it depends what you intend to do with the PPOR and IP (ie. is it worth making the PPOR into IP - 6 years grace for PPOR CGT exemption etc - and moving in to the IP ?)

    Cheers
    Carl
     
  3. voigtstr

    voigtstr Well-Known Member

    Joined:
    24th Jan, 2007
    Posts:
    679
    Location:
    Hobart
    could you live in the small IP (when is their lease up?) and rent out the ppor?
     
  4. Jerribel

    Jerribel New Member

    Joined:
    29th Jul, 2007
    Posts:
    2
    Location:
    nEWCASTLE nsw
    thanks

    Thanks for your replies. No living in the IP is not a possibility at the moment. i think the idea of getting an independent valuation is a good place to start -thanks