| selling shaes to buy a house |
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andrew29
New Poster
Cash: $ 0.45
Posts: 2
Joined: 01 May 2006
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| selling shaes to buy a house |
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Hi everyone,
My girlfriend and I are are looking to buy our first house (sick of renting). We have a healthy deposit of $75k of which $20k is shares. $8,000 in one managed fund, $6,000 in another fund and the rest in individal shares.
We are hoping to buy something in the next 6 months or so.
Is there any potentil benefit to selling half the shares now so I pay half the tax on them this financial year and then sell the other half next financial year? Of course i know it'll dependon my actual situation but I'd appreciate some views on whether its worth looking into.
BTW I've held all the shares for 3+ years.
Any advice appreciated.
Thanks
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Mon May 01, 2006 12:26 pm |
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Kiaser
Senior Member
Cash: $ 43.05
Posts: 209
Joined: 12 Apr 2006
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Wealth in the stock market = time. Also, average returns on real estate over the course of the past few decades are sub-par compared to mutual funds.
I definetely say putting 20% down is a good idea to avoid PMI and get standard rates, but if you need to tap into your long term investments I'd consider saving up more, borrowing from family, or accepting PMI.
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Mon May 01, 2006 9:16 pm |
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Stock Mama
Full Member
Cash: $ 13.80
Posts: 68
Joined: 06 Apr 2006
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If the average performance on your stocks is greater than the interest rate on your mortgage (I hope it is!) then keep your stocks and keep doing what you're doing with them.
Your house is an investment, too, since it will appreciate in value -- if you do your homework, choose a good neighborhood with lots of desirable features (good schools, etc.). If you really choose well, the gains on the value of the house could exeed the interest on the mortgage. And if you budget well, you can pay the mortgage off early (or refinance if the rates fall).
And now I've tapped out my knowledge of real estate investing so I'd better stop there.
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Tue May 02, 2006 3:11 am |
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andrew29
New Poster
Cash: $ 0.45
Posts: 2
Joined: 01 May 2006
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| thanks |
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Thanks guys and girls, Sounds like holding onto them is the go.
thanks agin
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Tue May 02, 2006 7:53 am |
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