Upsell possible via short term investment property

Hi there,



Would really appreciate thoughts on this.



Basically, my partner and own an apartment and have been looking to upsell to a house for the last year. On 2 occasions, we came very close to achieving this, but then on once occasion our buyer pulled out last minute and on the other occasion, the people selling the place we were close to buying pulled out.



In an effort to reduce the drama, I am wondering if there was some way we could do this in stages by buying a house for our PPR and changing the apartment to an investment property - which we would later sell and offset against the PPR mortgage.



I may be in dreamland on this one, so would really appreciate your thoughts and indeed the pros and cons.



The details are:



Apartment value – 210K

Outstanding mortgage of 150K



Cost of desired house – 380K plus stamp duty of approx 20K or 420K new property



Joint savings – 30K

No other borrowings

Salaries – both at 40K P.A.



Cheers,

Marge

You can buy your house and if you live in it it will become your PPR . In relation to the apartment if you then rent it you will be liable for CGT on the appreciation in the property after it ceases to be your ppr. Also then hope the market dosent pick this period to tank!! Good Luck

The sell home or keep as investment key post might be relevant for you.