HI There. I will cut to the chase because typing is not a strong point.
I have 3 properties 2 of of which are tied to one I own/owned?
The equity in these have grown considerably. I must say that they are all only units and I come from Perth so market values are probably lower than where you guys come from.
They are collectively about 650 in value with about 230 owing.
So with that said.
I must say that I am renting (a ****box) and have them all tennented So the whole project is nearlly 90% neutrally geared (approx)
My situation which I am having a hard time figuring out is whether to buy another place at which I am looking around 400000 in total.
By selling off a unit @200000
loaning 200000 repayments 7.7% lo doc approx 15000 a year
Then the CGT on the sale
There may be some savings from renting a room (not that keen but could be done)
Keep renting cost approx $8000-9000 per yr
and borrow to get into stocks/funds or whatever else
So Pros of house are I could live in a decent place small cap gains
Cons expensive repayments with little growth over coming years Most gains have been made in Perth Market and I am really buying @top of the market.
No reall tax advantage that I see because I will be going back to school to study so no reall income (unless any of my speccies come thru )
And the Pros and cons of fund s and stocks are....?? Please fill me in
I know this is an incomplete explanation of my situation . Ive done my best and quickest. So thanks for any advice