Hi guys, i need your help, 7 months ago i bought a one bedroom apartment (its big 60 sqm) for $400,000 in Crows Nest, my mortgage repayment is around $850 a week including strata fee, i work for a bank and my income is $1150 after tax, i bought the property because i want to make a profit one day on its appreciation. However now i checked the price in my area, 1 bedroom apartment only sell for $340,000, should i hold on to my investment hoping it will go back up, or should i sell? I got first home grant and i am currently living in the apartment. please help
Personally I would not sell an appreciating asset (Albeit not increasing at the moment).
Have you considered switching the loan to an interest only loan and renting the property out.
You would be able to claim not only the interest / rent shortfall as a deductible expense but dependant on the age of the building would also be able to claim an amount for Depreciation and Building Write off as well as any costs associated with the mortgage establishment, conveyancing and mortgage stamp duty etc (over a period of 5 years / term of the loan whichever is longer).
With knowing the approximate figures you may find that you are financially a lot better off in having someone else share some of your shortfall.
Richard Taylor | Australia's leading private lender
Hi Richard, just to hijack the post. We lived in our property for 12 months then moved towns and now it is our investment property. Can we claim "any costs associated with the mortgage establishment, conveyancing and mortgage stamp duty etc " for the FY just past? Regards, Maree
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