I have a 3 bedroom townhouse negatively geared. Rent is $255 wkly, but I fork out $430 wkly ( which covers everything – Body Corp, insurances, management fees, loan repayments, etc) Apart from paying off the loan, how can I turn it into a "positive thing"?
Please give more info….where is this townhouse? How much did you pay for this townhouse when you purchased it? If you have made significant Capital gains? If so perhaps selling would be worthwhile??????? Can you increase the rent? Can you add value to this place….cosmetic makeover to sell and make a profit or increase rent do that you are not spending so much of your cash on it.
Give more info please.Have you made it interest only? this will help a little, you can get a reduction in your weekly tax however discuss this with your accountant first.
How about offering the tenant an option to buy the property in exchange for an option consideration that can be added to the weekly income and make it positive (or at least less negative).
I have about the same figures but with neg gearing i can manage easily. I have allowed to add two bedrooms on which will cost me around$10,000 but i should recieve over $350 A week.Depends on property i guess.
I bought the townhouse in 2000 for $145000, and it's now valued around $216000. But along the line we refinanced, and our loan is now for $206000. The rent has increased from $165 to $255 over that time. I can't add to much value to it, I think, as it is a Body Corp situation, and things have to be approved. Our on site managers look after the place really well. We are paying interest only at the moment, and I was thinking maybe we should start paying the principle off, as, to buy a place now, $206K isn't such a huge amount. What do you think?
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