How do I go about selling shares to buy a PPOR?

Hello!

Selling shares to fund the purchase of a Principal Place of Residence (PPOR) is a common strategy, especially in high-cost real estate markets like Sydney. Here’s a general guide on how to go about this process:

1. Review Your Investment Portfolio: Since you mentioned owning VAS and VGS shares, it’s important to assess the current market conditions and the performance of these investments. Given that you’ve held these shares for 5 years, you might be in a good position in terms of capital gains.

2. Consider the Tax Implications: When selling shares, capital gains tax (CGT) is a crucial consideration. Since you’ve held the shares for more than 12 months, you’ll likely be eligible for a 50% CGT discount. This means you’ll only be taxed on half of the capital gain at your marginal tax rate. It’s advisable to consult with a tax professional to understand the exact tax implications and plan the sale timing accordingly.

3. Decide How Much to Sell: You mentioned considering selling $100k of your shares. It’s important to calculate how this will impact your investment portfolio and whether it aligns with your long-term financial goals. Also, consider the market timing to maximize your returns from the sale.

4. Executing the Sale: To sell your shares, you can place a sell order through your brokerage account. Since you are a Pearler customer, you can easily do this through the Pearler platform. The process typically involves selecting the shares you wish to sell (VAS/VGS in your case), specifying the quantity or the total value you want to sell, and placing the order.

5. Managing the Proceeds: Once the shares are sold, the proceeds will be deposited into your linked bank account after the settlement period, which is usually T+2 (Trade date plus two business days). You should then have the funds available to use as a deposit for your home purchase.

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Hi Matteo,

I’m not really sure how to answer this, but you literally just click on the fund and then click sell instead of buy, and choose the amount you want to sell.

You do this during the day when the market is open so that your order can be filled. There is no magic to it or anything you need to understand, except of course that there will be capital gains tax to pay.

You can do this all at once via pearler and it will cost the same as buying. The funds will clear within a couple of days and then you can withdraw those funds to your bank account.

Hope that helps.
Dave