Hi
I am renovating my PPOR, I have a feeling that I have over capitalised but won’t be able to tell till I have finished.
My question is this.
I assume if you could rent it and make it + cashflow then that is the best option, use the equity for another place. BUT if it would be negative would it be best to sell. OR would it depend on how negative. Say it was going to cost you $50 pw initially, how long is it likely to take to become breakeven.
As cost of selling is not cheap I assume there is a cutoff point where negative is better than selling and going further when keeping is really not worth it as too negative.
Can anyone help?CG or capital growth is one of the things people look at with a -ve geared property. Also if built after a certain date (1986?) you get depreciation back as well as other tax deductable components. So what may initially look like a -ve could manage to be neutral or +ve.
Just make sure that you have done your research before doing either.
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