I'm fortunate enough to be in a position to be a homeowner to two properties. One as our PPOR and the other as an investment (single dwelling with a granny flat).
My partner and I lived in our investment property for about a year before moving out and purchasing our current home. I was told about the 6-year CGT rule (basically exempt from CGT if I lived in my investment property within 6 years of selling) and it's gotten my partner and I thinking if we should just call it a day and cash out.
Purchased the investment property back in 2015 for c. $530k. Built a $120k granny flat at the back in 2017-18. The yield on both is quite decent, up until all these rate hikes. The main house nets us $420 pw, and the granny nets $370 pw. I'm still somewhat positively geared on them, but barely (probably pocket about $100 a week).
Comparables in the area show I could sell the investment for $1m. Based on some rudimentary math (selling price - mortgages - sellers fees) I stand to pocket roughly $420k, excluding the CGT I mentioned earlier. If I were to sell, I would return the $50k my parents gave me to help me purchase the house, as well as another $50k on the side for a specific reason my partner and I want to explore.
That would leave me with just over $300k. My current line of thinking would be to invest half into a safe ETF, and leave the other half in the bank to help offset my current mortgage for my PPOR (at around $600k).
Would you sell if you were me? For context, partner and I are 30 years old, currently have combined total of c. $70k in cash, no other investments. I make $130k pa working in government, partner is a healthcare worker that makes a bit under, since they're a 0.8 FTE.
Any and all thoughts are welcome, and happy to answer any questions!
My partner and I lived in our investment property for about a year before moving out and purchasing our current home. I was told about the 6-year CGT rule (basically exempt from CGT if I lived in my investment property within 6 years of selling) and it's gotten my partner and I thinking if we should just call it a day and cash out.
Purchased the investment property back in 2015 for c. $530k. Built a $120k granny flat at the back in 2017-18. The yield on both is quite decent, up until all these rate hikes. The main house nets us $420 pw, and the granny nets $370 pw. I'm still somewhat positively geared on them, but barely (probably pocket about $100 a week).
Comparables in the area show I could sell the investment for $1m. Based on some rudimentary math (selling price - mortgages - sellers fees) I stand to pocket roughly $420k, excluding the CGT I mentioned earlier. If I were to sell, I would return the $50k my parents gave me to help me purchase the house, as well as another $50k on the side for a specific reason my partner and I want to explore.
That would leave me with just over $300k. My current line of thinking would be to invest half into a safe ETF, and leave the other half in the bank to help offset my current mortgage for my PPOR (at around $600k).
Would you sell if you were me? For context, partner and I are 30 years old, currently have combined total of c. $70k in cash, no other investments. I make $130k pa working in government, partner is a healthcare worker that makes a bit under, since they're a 0.8 FTE.
Any and all thoughts are welcome, and happy to answer any questions!