Sunday 25 August 2013

House Sale Settlement Tomorrow

The sale of our investment property should 'settle' tomorrow, and all going well the balance of net funds should appear in our bank account. The sitting tenants had found a new place recently, and were scheduled to move out yesterday, and today DW will be dropping by the do a final inspection (in case there is any substantial damage to the property which would need to be claimed against the tenants' bond deposit) and collect the keys. Our agent should be handing over all the sets of house keys to the new owners tomorrow.

The net proceeds (after paying off the investment property mortgage and the various selling costs) should be just enough to clear the mortgage on our home and pay the capital gains tax on the investment property sale - although one of our home mortgage accounts is a 'fixed rate' loan that runs for another 18 months or so, and the capital gains tax won't be due until about March 2015.

Being mortgage-free will provide additional cash flow that I shall use to whittle away at some of my existing margin loan balances, and DW will use her extra cash flow and the available equity in our home to borrow and invest in a diversified share portfolio. I tend to favour investing in the stock market via low-cost 'index fund' investments, having had little luck 'picking' individual stocks (or high-cost 'managed' investment funds), but DW wants to be more hands-on, and will 'pick' her own portfolio of 5-10 stocks to invest in.

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