Hello everyone,
I am writing this post in the hope that any advice or comment might give me a little piece of mind.
I bought a two bedroom unit in the heart of The Entrance at the height of the property boom in late 2003.
Through a combination of lack of experience and listening to the wrong people I paid about 40,000 dollars more for the unit than it was worth!!!
However my dilemna is this, future growth prospects for units in this area are 0-2% per year for the next 5 years in which time I will barely recover the extra money I paid for this investment. I am negatively geared to the tune of 200 dollars weekly with tenants paying market rent.
My gut feeling is to sell and cut my losses but I dont have many supporters with this strategy. I know that eventually the investment should perform but it seems to me a long term strategy in this case will be a high risk and very expensive exercise.
Any thoughts or comments would be greatly appreciated. Thank you.Supachef
You could improve your cashflow position for one thing. I think it is a form 2036 you have to lodge with the ATO…
http://www.ato.gov.au/corporate/content.asp?doc=/content/43572.htm&pc=001/001/007&mnu=5356&mfp=001&st=nn&cy=1Confirm this with an accountant.
Robert Bou-Hamdan
Mortgage AdviserHi supachef,
I’m by no means an expert and you will receive much more experienced replies than this one. I guess it depends on many factors. Are you on a massive salary where you can at the very least get some tax back? Do you intend to purchase multiple properties and if so, perhaps selling might be an option to free yourself up for better opportunities in the current market. $800 a month for 5 years is a lot of money that could be put to better use in the mean time. Just my thoughts. Perhaps cut your losses and let your profits run?
Cheers,
Gatsby!
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