Starting again in my 50s

[Joolee]

I've just been through a divorce and we've sold our properties. I'm left with about 47% equity in my Auckland property and my income has gone down - and I'm in my mid-50s and I don't exactly have lots of time to make and learn from mistakes. I pretty much have to get it right.

I'm thinking to downgrade - i.e. sell my 3 brm and buy a 2 brm minor do-up (minor as in doesn't need much more than new kitchen & paint, or similar), sell and repeat until I've increased my equity. And hope to also buy a rental property in the regions at the same time.

Someone has told me I should just sit in my house and wait out the market, house needs a lot of work but is in a good location. I don't have funds to fully renovate this house at the moment.

Those experienced in this industry - what would you do to get ahead?

[artemis]

That is tough Joolee, but what a great attitude. Suggest you do some serious sums and gather plenty of info before making a big change. Flipping IMO is best attempted with experience. Not only do you end up paying quite big bucks to sell and buy, but there are tax implications and as a rule of thumb everything costs more than the budget.

[Joolee]

That is tough Joolee, but what a great attitude. Suggest you do some serious sums and gather plenty of info before making a big change. Flipping IMO is best attempted with experience. Not only do you end up paying quite big bucks to sell and buy, but there are tax implications and as a rule of thumb everything costs more than the budget.

Thanks for your reply. I think I can "flip" once without being taxed. Thanks for the advice, that's the biggest concern for me, not getting the sums right.
Do you think it's doable?

[Nick G]

You fall under the bright line for any trade now....

My first step would be to speak with a broker. You need to understand your borrowing power in different situations (keep, downgrade etc).

Cheers

[DaveW]

You fall under the bright line for any trade now....

Unless it's your main home you can sell without paying tax. 2 main homes within 2 years one after the other.

My first step would be to speak with a broker. You need to understand your borrowing power in different situations (keep, downgrade etc).

Cheers

i agree. What funds can you get to renovate your current house.

[artemis]

Expenses are not tax deductible for the main home. While not necessarily a showstopper it is something to bear in mind if embarking on renovation, particularly if there is mortgage interest to pay as well.