[8D]my partner has a one bed unit in syd. that is costing us a packet( neg ger). i would like to sell she could make a small profit on this, which we could spend on two cash pos house she feels that its her nest egg she bought it b.b(before bill) and now lives with me and the kids + 2 we have got one +ip and are waiting to settel on our second has any one got any advice on this would love to hear from the pool thanks [8D]burbonbill ps our new year res. is to buy 5 more ip in 2004 which is way cool[8D][8D]
Bourbon,
Don’t forget with -geared properties there is ‘usually’ more capital growth associated with such, whether to get rid of it or not would depend on her financial and tax situation, don’t forget she can use the ‘Equity mate’ in the – geared IP to further purchase +IP’s the better the + gearing the better for you, especially if tenanted..
also how’s she feel about selling it..
Congratulations on the 2nd + IP [^]
REDWING
“The man that thinks at 5o as he did when he was 20 has wasted 30 years of his life”
BB
How has the unit performed as an investment? Does it still make sense, are it’s future prospects good? I wouldn’t go selling a property just because it is a -ve CF investment. Has it delivered capital growth over and above the cost of owning it plus CPI?
Remember that selling will see some $$$ disappear in taxes and agents fees. As Redwing says, you can access the equity to fund further purchases.
If you are to be accumulating +CF property then the unit may make a good offset in terms of taxable income.Regards
Clive
Hi,
I’ve moved this to ‘PropertyPlus’…
Well, IMHO,
A. If it meets you’re investing criteria for required ROI = keep it.
B. If you don’t have a required ROI, set one and monitor the situation for a few months.
C. If it does not meet your required ROI, either look for ways of increasing the return or else, if all else fails or you just want out, sell – remembering that selling will trigger a taxable event for CGT purposes.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi burbonbill,
You could also do this, release some equity to purchase a +ve cashflow property or properties on the full purchase prices and use the “Offset Gearing Principle” to have your Negative geared property, offsetted against another property’s passive income.
This way, you have 2 properties, but can further benefit more in taxation wise, and have less money or no money coming from your pocket to fund either properties.
cheers,
s.i.s[8D]thanks for your reply i just love this great food for thought.to be able to ask and get sooooooo much good and diffrent info on property burbonbill[8D]
There’s the simple test: Has it made you wealthier and is this likely to continue? If not sell it. If yes evaluate if the return overall is satisfactory, and only keep it if it is. Good luck, Julian.
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