2 bedroom unit in Dandenong, bought $338K in 2010 (probably paid too much for it), negatively geared and equity account which has been paying for shortfall each month is dwindling. Should have joined this forum before embarking on this. Should have done due diligence. Should have… Help..
Can you renovate the property and draw upon some equity?
Prices may have not gone up in the past few years but is there scope for CG growth in the upcoming years?
What do the numbers look like if you sell the property (factor in sell costs) and purchase another property?
TheFinanceShop | Elite Property Finance
http://www.elitepropertyfinance.com
Email Me | Phone MeResidential and Commercial Brokerage
If there's little scope for future growth, the property can't be renovated to add value and if the money can be used better elsewhere then I'd consider selling up.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for the responses. Looks like have to sell.
Wonder if it's any help/use to seek specific advice regarding to sell or keep.
Who would u recommend?
Hi again
Don't just base your decision on a few responses to this forum. Consult some professionals in your area – ask real estate agents about how the market is looking (chances are they'll try anything to get your listing though), talk to your property manager about the state of the market and speak with your accountant about the taxation implications of selling.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
There is a saying people use, "shoot the dogs" in your portfolio. I agree that no-one can make the decision for you and maybe half the battle will be working out which concerns are emotional and which are financial. Get out your excel spreadsheets and crunch away. Are your repayments greater than $320 per week? Is it the property or other discretionary spending that is problem – cars, eating out, dodads! Are you claiming all the deductions your are entitled to.
Sometimes, you get rid of your stars as well. Why? They have done their job – reap the rewards from these and concentrate on new strategies etc. There may be an upside in keeping the underperformers eg. is the area about to go through boom times etc?
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