A new buyer for our rental property was found, so we've finally "sold" our investment rental property for $806,000. Of course nothing is 100% final our bank clears the buyers payment on the settlement date (likely to be 8 weeks from today, unless our sitting tenants agree to move out before that date) - the last "buyer" who had negotiated a final price of $805,000 then pulled out. At least this time the buyer has already paid the 10% deposit to our agent, and has signed the purchase agreement, so the odds are good that the sale will go through. We signed the contract today, and I've made a rough calculation of the net proceeds after the agents fee (~$14,500), capital gains tax (~$68,000), and investment property mortgage ($249,140) are all paid. It should be just about enough to completely pay off the mortgage on our home when the period for the fixed rate part of our mortgage expires two years from now, and in the meantime we can clear roughly 60% of our home mortgage which is on a variable rate loan.
Once our mortgage is paid off I'll probably use the extra cash flow to 'top up' my superannuation contributions until I reach retirement age, while I think DW is planning on (maybe) buying a 1-bedroom apartment as an investment.
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