hi
i own a unit in town and a house these are the numbers.unit : rents for $260 repayments are $98 000 dollars a week
house : rents for $220 repayments are $152 000 dollars a weeki,ve been offered $195 000 for the unit and i,m lookin at buying a block of units for $470 000 that rent for $125 each
would it be i good idea to sell and get cash but loss the good cash flow
Thanks Rob
Hi Rob,
Hmmm – I am a little confused by your figures. Rental income and repayments are not distinct.
I would also add that property values, purchase dates and loan amounts would assist those who are prepared to make comment.
Derek
[email protected]
The Investors Club http://www.monopoly.tic.com.au
0409 882 958
Skype – derekjones2113hi
unit : loan is $62000 bought 3 years ago and is valued at $190 000
house : loan is $97000 bought 3 years ago and is valued at $220 000Thanks Rob
hi
sorry about that these are the right figuresunit : rents for $260 repayments are $98 dollars a week
house : rents for $220 repayments are $152 dollars a weekThnaks Rob
Hi Rob,
Why not keep what you have and leverage off your available equity.
As it stands (assuming banks will lend at 80%) you have capacity to release approximately $90K from the unit and $79K from the house.
This equity should provide the deposit of $94K (assuming 80% lend) + $23500 for costs, leaving a total of $51.5K for other activities.
At this stage your total loans are now $652.5K – at 7.1% you have an interest bill of $46327/annum. At the same time your rental income = $25K (excluding block of units as you haven’t identified the number of units)
If there are four units then your rental income will increase by an additional $26K/year.
There are a couple of key points that you will need to research – capacity to secure 80% on existing properties and also on the block of units.
Further the critical point is what are your plans and where are you headed with your investments.
Derek
[email protected]
The Investors Club http://www.monopoly.tic.com.au
0409 882 958
Skype – derekjones2113I agree, with Derek. Why sell? You just have to pay taxes, and stamp duties when you buy again.
Terryw
Discover Home Loans
Parramatta
[email protected]
Sign up to my mailing list.
Just send me a blank email, with “subscribe†in subject line.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I couldn’t agree more with the 2 previous posts.
Never never sell – why not utilise the equity and increase your leverage.
Cheers
Richard Taylor
Residential & Commercial Finance Broker
100% Finance on selected properties in the USA.
Email us to be added to our mailing list.
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
Hi Rob. Congratualtions…..you have in your posession what others are scouring the countryside for…..cashflow and capital growth. The unit sounds a beauty…well done. My personal opinion (which is what you are asking for…) is that unless you were bordering on destitution you should hang onto these, and maybe still even then! The replies so far I agree with for sure. You have a ton of equity, and if you are happy to have one loan for two properties (often called cross collatoralizing, which some like, others say no way ever to) may even find you can leave one of the existing loans untouched, and still stay under your 80% LVR. All the best with your portfolio! [strum]
1 word for you Equity. Equity is your friend, use him/her(it?) to secure more and more properties. Selling can secure more but you will essentially be losing part of your profits throught the selling costs. Good luck.
Christopher.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
