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How to buy new PPOR?

Discussion in 'Investing Strategies' started by Triu, 4th May, 2007.

  1. Triu

    Triu Well-Known Member

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    WA
    Can anyone please explain how to buy a new PPOR if i want to sell my existing PPOR to a Trust then borrow against the 80% equity less original debt. Is that what is left over for a new deposit on new PPOR?

    eg. PPOR current Value - $600k less $250k for debt.

    Sell to Trust less expeneses etc. $600k x 80% = $480k - $250k = $230k for myself on new PPOR.

    Is that right? Just trying to work out my figures does anyone have a spreadsheet that can calculate these figures which would include depreciation etc.

    thanks
     
  2. Jacque

    Jacque Team InvestEd

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    Don't forget that you'll be up for stamp duty costs if you sell, even to a discretionary trust. I'm sure NickM will clarify here and provide you with more information anyway.
     
  3. DaveA

    DaveA Well-Known Member

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    If you were selling an IP to a discretionary trust, im pretty sure there is no CGT payable, as you are allowed to change the legal ownership of the title if the individual still controls the asset

    as it was a PPOR there would be no CGT anyway
     
  4. NickM

    NickM Co-founder Staff Member

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    That is correct, however if you use the same lender then you can borrow $600K for old PPOR and the balance on the new PPOR. ie cross collatorise the properties to maximise the tax deductible borrowings.

    deprec depends on the property and is not a cash outlay as far as the debt position goes. If you are trying to work out your after tax cash position then, yes take it into account.
    NickM
     
  5. Jacque

    Jacque Team InvestEd

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    No CGT payable, but stamp duties are usually incurred on any selling, despite what the circumstances may be.