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thanks terry, I know that people sometimes do it on more than one which is russian roulette in my opinion
The only way it would be right to sell would be to move the money into somewhere performing a lot better. Unless your crystal ball is high gloss this is tricky to determine. Generally regret is associated with looking back on cashing in a property unless it is for the next one.Entry and exit fees including capital gains tax, agents fees, advertising , stamp duty will all be lost from your equity. Small towns are probably best at present with rising prices and interest rates forcing people in bigger cities to examine their options. Any country town which has survived the drought will probably withstand the test of time. Consider whether a rent rise may be warranted and make sure you are getting all the benefits of tax deductions if you are working.
Good luckpossibly as much as 30k a room although some 2 bedders have extra rooms downstairs and others have large enclosed verandahs used a sbedrooms. 2 br houses are harder to on sell and rent if there is surplus stock on the market at the time. I just bought one advertised as 2br but is actually 5br 2 storey, dud agent my win, renting to 5 uni students who think it a palace.
Some 2brs have been successfully turned into 4br with re aligning internal walls. This is down to the structure. Some will only ever be 2br. I prefer 4br as they will always rent over less when the going gets tough. All the best,
jeffbest to check that selling to trust won't incur stamp duty, it varie state to state. also be careful renting and claiming ppor, the ato have many and varied ways to catch you out like electricity, phone gas bills electoral roll, d/lic,etc.
If the weekly burden is getting to you , you may benefit from claiming a Taxation variation authority. These enable your employer to tax you less and spread the benefit over the financial year instead of waiting for your return. Ask your accountant or download forms fro ato website, they used to be called 221d. This may be enough to make it easier to hold. If you do rent it out and end your ppor status get a high valuation or a few optimistic appraisals from agents. This will minimise cgt when the time comes. Depreciation schedule will help along with refinancing on an interest only loan if you get another P&I on your next home. If you do shop around to buy elsewhere,Townsville is still getting good growth and very low vacancies, not a bad yield.current market analysis. It displays the comparable properties in similar locations, usually within 500m radius and shows their recent sales, up to six mths, properties currently on the market and can be as detailed as showing listing price drops and number of days days on the market. It is a snapshot of real estate activity in your area for properties similar to yours. This is essential to properly establish a listing price if not going auction. It is useful to determine setting reserve for auction and can be used to overcome low offers from buyers. Not all agents use cmas some know their market place well enough to store this data in their heads but in Queensland it is a legal requirement to give one to sellers unless going to auction
I suggest you get to a library and research leverage, depreciation and negative gearing. This will shed some light on your questions, Noel Whittaker has some excellent books written for people your age. My only regret with property investment is that I did not start younger. Basically, property has doubled in value on average every ten tears since they started recording property values around 1000 years ago. I don't see any reason why it will stop now. Everyone has to live somewhere. Small regional towns with good infrastructure, especially ones near the coast have very low vacancy rates, high yield and low entry price. After rises in the big cities, the small ones nearby often follow. By using the equity in property to expand a portfolio and purchase further properties, eventually some can be sold to pay out own home. this can benefit paying off a large mortgage early in life.
Good luckOften a minor percentage over the market value will deter buyer interest. I would ask my agent if other properties in the area/price range have been selling to guage the market activity. You could get a valuer to give their opinion, this will cost 300-500, or get in a few other agents who are active in your area and quiz them on their views as to price. How long on the market? Have you listed with a discount commission agent? have you used pro photos and print media ads?
An auction will work well so long as the agent is experienced at conducting them. It is widely stated that there are only ever three reasons why a property will not sell. Price Agent or Promotion. I assume that the agent you have appointed is doing their job well but you might like to as yourself. Did you or agent determine the list price?Did the agent provide a cma? Have you received feedback from your agent as to what buyers have said about the property?have you received written reports as to viewings, enquiries, offers?
Maybe a revamp of the marketing will bring fresh attention to your property , otherwise removing the price as per auction should stimulate buyer interest from a variety of price expectations or a price reduction may be required. All the best
Jeff
