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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