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Hi Dino Livanidis here from http://www.npis.com.au.
If your property has gone down in value, the first thing you have to find out is where you got your valuation?Just remember, don't relate to sales that have happened because people had to sell due to financial problems.
Many people panic and just want to sell a property for the sake of just selling.
Plus many Banks will under value a property to protect themselves.
I remember years ago when I had a valuation done on a property in Sth Yarra, Melb.They valued the property $80k under what I had purchased it for, but at the time all properties
were returning approx 4-4.5% rentals. With this valuation it made the property return a 6%
rental, so I asked the Valuer if he could find me another property with a 6% rental.He couldn't and he told me secretly that everyone is undervaluing properties.
I ended up selling the property for the price I was after and more a year later.You would have done all your calculations before you purchased the investment so what has
changed? Remember interest rates are coming down so it will cost you less to hold.
So in relation to your property dropping in price, if you can hang in there and hold it for the
long term.Hi Dino Livanidis here from http://www.npis.com.au.
If your property has gone down in value, the first thing you have to find out is where you got your valuation?Just remember, dont relate to sales that have happened because people had to sell due to financial problems.
Many people panick and just want to sell a property for the sake of just selling.
Plus many Banks will under value a property to protect themselves.
I remember years ago when I had a valuation done on a property in Sth Yarra, Melb.They valued the property $80k under what I had purchased it for, but at the time all properties
were returning approx 4-4.5% rentals. With this valuation it made the property return a 6%
rental, so I asked the Valuer if he could find me another property with a 6% rental.He couldnt and he told me secretly that everyone is undervaluing properties.
I ended up selling the property for the price I was after and more a year later.You would have done all your calculations before you purchased the investment so what has
changed? Remember interest rates are coming down so it will cost you less to hold.
So in relation to your property dropping in price, if you can hang in there and hold it for the
long term.If is your home and you have been living in the house, you pay no CGT period.
No figures or nothing.
Dino Livanidis
http://www.npis.com.auHi Petlover
Just remember a couple of important things that you must know when getting into an investment property.
It’s a business and the figures must meet your personal cash flow, research all the areas and make sure the investment meets all the criteria’s.
Like potential for capital growth, right rental and depreciations, type of tenant etc.
Sit down and work out your personal cash flow, first making sure you are in a position to invest and then run some figures on different type of investments, you will after a while know what will suit your personal situation and know how much you will want to borrow or commit yourself to.
This is why I always sit with clients to see where they do stand financialy and see if property investment is for them or not. If it is we then discuss different options as far as the properties are concerned. And this is what you will need to do.
Feel free to download my free report “Ultimate Guide to Property Investment” http://www.npis.com.au
Wishing you all the success
Dino Livanidis
