I have a 250k mortgage. Owner occupied home worth is 750k.
We have borrowing power of 1.080m. With all these new changes that I do not understand from July 2027 is it still worth buying a property to rent out?
The long term (I don’t know when is best) goal is knock down the investment property and build a dream home on the quality land the investments on… thoughts? 😅
We bought our home super young it’s super small 3x1 with non stop work needing to be done to it.
We have no room, no shed, tiny garage.
We would really like to upgrade, larger home, kitchen pantry, bath, large shed, guest rooms, double secure garage, entertainment area yada yada. Why does it give me this guilty feeling.. greedy I don’t know. We’ve work so hard at the same time for something nicer.
We are 36 now so plenty of working life left in us. Happy in our jobs. Expect to pay home off in 20 years. Deposit of 30% of purchase price to put down.
It is a change of 2300 mortgage per month to 5700.
We can afford it, albeit not saving as much as we were but we are home bodies and not interested in gambling with I’m sure could be safe, other investments redditors promote.
Why am I feeling a glimpse of uncertainty still. Have home values ever plummeted!? Are we going to be screwed. Will everything be ok lol 😅
I have a 230k loan I am turning into an investment loan to rent my property. Home is worth 700k.
Bank has approved 950k additional loan for a new owner occupied home.
Spoke to bank I cannot claim negative gearing for the full 550k by bring the mortgage up for the investment loan. Only the 230k investor loan can be negatively geared.
Can someone check my workings around CGT for 10 years time when I sell rental?
If my home is worth 700k at the start of renting it. With 4% yearly growth I expect it to be worth 1,036,000.00 in 10 years. With 2.5% expected CPI. This is 897,000. Real gain is then 139,000. So I am x this by .39% CGT. So 54,210k for my capital gains tax? Income for the year it’s so I foresee will be 250k.
Anyone see any holes?
Hi there my current and only home is worth 700k with a 230k mortgage.
I have calculated useable equity as 320k. I want to bring this rental mortgage up to 550k and rent it out and sell it in 10 years to pay off new mortgage.
New mortgage is going to be about 880k.
Live in Rockingham WA, I expect the rental to be worth i think 1m in 10 years.
Owing of new mortgage in 10 years would be I think 720k.
AI giving me different answers for the CGT to pay. Have come to the humans.
For my partner of 20 years.