All Topics / Legal & Accounting / Opinions please – cash flow loss – Western Sydney

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  • Profile photo of jsawtelljsawtell
    Participant
    @jsawtell
    Join Date: 2007
    Post Count: 57
    February 3, 2008 - 1:59 pm

    Hi,

    I moved out of my PPOR a year ago.  It is in Glenmore Park (other side of M4 to Penrith).  The property is a 4 Bed + Study with 3 living areas, deck etc.  Would be valued around the $470,000 mark.  It is currently rented out for $390 / week and after depreciation etc, my after tax loss is about -$9,000.  I can financially sustain it at the moment, but would I be better off pulling out my equity (not much) and put towards a property/suburb with more movement?  Or do people see Western Sydney increasing in value.  Obviously I would need it to increase more than $10k / year.

    Thanks

    Jason

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    February 4, 2008 - 12:29 pm

    Hi Jason

    I guess if you pull out some equity you will be better off if you can make a return greater than your interest rate, It may be difficult to do with property in the short term but may well happen long term. Whether you should do it or not wil ldepend on your outlook.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 2 posts - 1 through 2 (of 2 total)

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