Ok guys as one of my other posts say i am interested in property up north but not sure what to do. First a quick background
My PPOR on the south coast nsw Worth $345,000. Owe $200,000 Repayments just over $350 pw
Just purchased IP on south coast nsw worth $300,000 %100 loan. Must put in about $70 pw to service loan
Dual income total of about $120,000.No other debts No kids.Now i also have a car worth between $80,000 and $100,000. This car is a australian muscle car and there is a boom at the moment for these with my car doubling its value in 12 months.Now one option i have is hold on to the car and see how high they can go(I believe maybe $150,000 late next year and no cgt) or
Plan B. I sell the car and pay that sum of the PPOR loan reducing it to near $100,000 and also use some of those funds to pay upfront costs on a Coastal property in northern nsw.
So in a nutshell. Keep car and hope value keeps rising or
Sell car pay some of PPOR and purchase another property.
Which one do you guys think will be the best financial move.Don't kid your self about cars. It is going up in value now, but unless it is a very limited classic edition it will go down in value eventually like most cars do.
I remember when the Subaru WRX (I think it was called) was introduced in Aus. They were selling for more second hand because there was no stock of new ones available for several months. Now they're worthless. Same with the Ford Sierra Cosgrove – another Dinosaur.
No one ever went broke taking a profit, so I would recommend taking the money now; you've doubled your money – that's a great return.
No need to be greedy, and put those funds into your PPoR loan; then use the equity to buy more income producing investments that will keep going up in value long after the car has died.
Thanks for your reply. The car is a 1988 model and was worth about $45,000 brand new. Values dropped to low $20,000 in the early 90's but now there collectability is making them rise.They will never drop below there new car price again and mine is in mint condition with only 9000 klm for a 20 year old car.My concern is prices will eventially flatten out as in all booms and if i hold on too long i may miss a profit in the real estate game. What to do what to do.
Take the profit mate and invest to make more… If you keep the car how long do you beleive it will take to get from the $80K up to $150K??? With buying another property how soon will you make up that $70K in equity???
Sell the car buy another property, sorry to sound harsh:(
Luke
Good property will make more money un the long run than the car. Remember more people will be interested in property in the future also, but those cars appeal mainly to ageing baby boomers who would have all bought their toy by now! what car is it, a walkenshaw?
Yeah its a walkinshaw. Its value went from $40,000 to around $100,000 in just over a year. Thats a $60,000 profit tax free in a time when most properties are struggling.And there are no other outlays for the car unlike property. Im just trying to pick the right time to jump out of the car and into another property. At the moment the car is doing quit well. With early monaro,s in similar condition going for $200,000 plus and ford ho phase three,s going for $500,000 plus. The walkie definately has potential to go higher.
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