Should I sell my investment properties to buy a PPOR before baby arrives?

F

flammaomega

New Member
PPOR vs IPs
Hey blokes, I’m 32 and just found out my partner is pregnant. I’m very excited and looking for advice on what to do.

I have 3 investment properties:

Prop 1: $1050,000 / Debt 420k / rent $43,160 year
Prop 2: $800,000 / Debt 530k / rent $35,880
Prop 3: $850,000 / Debt 339k / rent $34,320

All properties are positively geared.

What would you do?

Would it be wise to sell everything, pay off debt, then buy.a PPOR with minimal debt? Sell one or two and keep one investment and get a larger loan for a PPOR?

I’m just figuring out what would be best for my situation and future. We currently rent, but would love to buy my own and get out of the city unit I live in.

Cheers
 
Rent where you actually want to live.

Keep buying investment properties until you literally can’t service new loans anymore.

If the current situation stays the same and you hold for 20 years, they’ll be worth around 11mil.

Pay off debt, tax, fees.

At 52, live off the remaining 8 9M or snag a commercial asset for 6 that’s paying a good yield.

Enjoy life.

In a similar spot, FWIW.
 
Sit down with a long term focused mortgage broker to go through your situation they can work out what you can keep and still buy a home. Just remember, CGT gets added to your income in the year you sell, so spreading out the sales will probably mean a smaller CGT bill, unless the government reduce the concessions without grandfathering them. Talk to your accountant about the likely costs to sell. My gut feel would be to offload no.1 first, but it also depends on location and portfolio balance. Happy to chhat more if you want to discuss the details offline.
 
Hey mate, first off, congrats to you and your partner on the news. Your portfolio looks healthy with around $1.4m in equity. The real question is how much is usable and how to structure it so it doesn’t kill serviceability. A colleague makes a good point if you sell, you’ll have to pay CGT. You could restructure your loans to free up some cash so your portfolio is neutral, then use the equity you takee out to buy a principal place of residence. This lets you keep all three investments and buy a principal place of residence.
 
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