All Topics / The Treasure Chest / To sell or not to sell….

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of Administrator
    September 2, 2003 - 12:36 am

    Hi Guys,

    I’m in a bit of a dilemma. This is my situation:

      [:)

      [:D

      [;)]I am thinking of selling one or two to pay off the others.. or at least have the cash there so that if the opportunity arises, I will have some money.

      [}:)

      [:(

    Anyways, is there any point to selling it right now.. If I do, besides the tax that I have to pay on them, I will be penalised for getting out the fixed loans.[:(

    Any comments would be greatly appreciated.

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    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    September 2, 2003 - 12:51 am

    Don’t sell just to free up cash in case you want to buy another. You seem to have plenty of equity you can use for your next purchase.

    By all means sell for other reasons but not this one[8D]

    Looking back on the IPs I have sold in the past I regret having done so – esp with this recent boom.

    Good luck,

    Simon Macks
    Mortgage Hunter
    mortgagehunter@iinet.net.au
    0425 228 985

    Profile photo of aussierogueaussierogue
    Participant
    @aussierogue
    Join Date: 2003
    Post Count: 983
    September 2, 2003 - 12:57 am

    angie sounds like yr in a great position.

    reducing your overall debt is not a bad idea.

    maybe you could sell the one or two that arent performing quite aswell as the others.

    otherwise sit back and watch the cash come in…
    [:D

    Profile photo of MelanieMelanie
    Member
    @melanie
    Join Date: 2003
    Post Count: 382
    September 2, 2003 - 1:25 am

    Hi Angie,

    Is your objective reducing debt or reducing dependency of investments all in one area?

    Generally I tend to agree with Mr Macks – if getting your hands on more ‘cash’ to do more investing in other areas is the aim, then use equity where possible.

    If reducing your debt or reducing your exposure in one location is the objective then yeah sell just enough to feel comfortable with your overall position but make sure you understand the loan break fees and tax penalties first, may not be worth your while.

    [:)

    Profile photo of Administrator
    September 2, 2003 - 1:34 am

    Thanks for your comments guys![:)

    I think that my main concern is that I think that the prices might be going slowing down or even going down soon. However, the more I think about it, the more I think that I shouldn’t sell.. as I will have to pay loads of tax and do not really require the money anyways. The properties are sort of positive, so I don’t really have to worry about them financially.[:I]

    It just looked like a good idea to get out before everyone else started getting out aswell and the market is saturated with sellers instead of buyers![:D

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    Profile photo of mcdeyessmcdeyess
    Member
    @mcdeyess
    Join Date: 2003
    Post Count: 56
    September 2, 2003 - 2:39 am

    Without knowing where these properties are a 100% return on your investment is brilliant, the times when people run into trouble is when they get greedy. If you are looking to sell, now is the time. If you are concerned about penalties from fixed rate loans, why not sell one now and wait a few years to get rid of the other without a penalty. I don’t like paying tax either but it is important to our society, one way to look at it is the more you are paying the more you are getting. If I was in your position I don’t know if I would sell, difficult to say without knowing someones full financial position and how much debt they are comfortable with. For me at the moment I am trying to become more liquid, because the time will come when things are very different to how they are now…..having money at the right time can be very valuable. Isn’t it Steve who says you make your money when you buy not when you sell?

    Just trying to provide a different point of view.
    McDeyess

    Profile photo of Administrator
    September 2, 2003 - 6:47 am

    thanks for that comment Mcdeyees.. I understand totally what you mean. I have just heard, (don’t know if it is true or not) but units in the Sydney CBD are set to fall.. they are totally overpriced and under-tenanted… and that there should be many mortgagee sales coming in the next year or so.. should be interesting… I would like to be ready when that happens.

    I guess it should not make a difference if I sell some IPs now or just use the equity later.. [:)

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