All Topics / Help Needed! / advice on keeping investment or not

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  • Profile photo of wireless2000wireless2000
    Member
    @wireless2000
    Join Date: 2008
    Post Count: 5
    July 30, 2008 - 8:35 pm

    hi everybody

    ive been following this forum for a few weeks and recently joined. im finding it very informative and helpful, so thanks to all…

    im after some advice concerning my investment property.

    i purchased a 1 bed apartment in erskineville, sydney in 2004 so my debt inc stamp duty is 340k.

    im on 7% IR til Aug 09 and rent $380p/week

    i think the unit is in a good spot near the city so im inclined to hold it, however ive been o/s for 5 years and wondering whether its worth my while to keep negative gearing and ride out any turbulence with savings or sell up and try and put everything into a PPOR when i return?

    thanks everyone
    much appreciated

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    July 30, 2008 - 11:28 pm

    Hi

    I guess the answer depends on your view of the market. Do you think prices will rise in the short term or fall? I am inclined to think that Sydney prices will rise as rents are going crazy here atm. This should push up prices – or rents at least. You seem to be getting a pretty good yield as it is too.

    if you can handle the repayments and don't need the money at the moment, then work out what it is costing you per year and estimate if the expected growth will exceed that.

    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

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