I have a friend who owns a unit on the lower north shore. It used to be her PPR until she upgraded to a larger unit. The original unit is paid off and is now an investment property. Her accountant has told her to sell the unit and use the proceeds to pay down non deductible debt on her current PPR and then buy a new property or two that she can negative gear.
As she rented out the original unit for a few months prior to moving in, she can't use the 6 year rule and sell it CGT-free.
She has no intention to purchase any more IPs in the near future but wonders whether she should buy/sell based on her accountant's advice.
Should she sell the unit because she can't claim any gearing, or do you reckon it's a good position to be in and tell her to continue as is?
As she rented out the original unit for a few months prior to moving in, she can't use the 6 year rule and sell it CGT-free.
She has no intention to purchase any more IPs in the near future but wonders whether she should buy/sell based on her accountant's advice.
Should she sell the unit because she can't claim any gearing, or do you reckon it's a good position to be in and tell her to continue as is?