My Wife and I are currently paying off three properties (with the assistance of tenants) .
we owe: Our PPR- 200k, IP1-193k, IP2-91k.
IP1- is cashflow +ive returning 340/week. IP2- break even returning 140/week when depreciation is factored in to calculations.My question is. Should I sell IP2 whilst property in my area is selling well. other units in complex are selling for 120-150k.
If I sell should i place the profits into PPR and use the equity in this house (presently valed at 350k) to borrow more money to find a +ive cashflow property.
If i keep unit (IP2)how can i borrow more money to invest in more +ive cashflow. The only option i see is to borrow against equity in PPR but would require refinancing and all the fees that come along with refinancing.
any assistance would be appreciated.
cheers,Ryan
Hi Ryan
The first thing I recommend you do is contact one of the mortgage brokers on this site and ask them to look at your whole situation.
You might be surprised, and find that you can actually borrow more in your current situation. At the very least, it will give you a better idea of what you need to do. I don’t know enough of your situation to offer advice, except that you need to factor in selling costs (CGT, agents, solicitors) as well as rebuying costs (stamp duty, solicitors, bank fees etc.).
Cheers
MelThanks for the reply. We actually went through a mortgage broker to get where we are 6 months ago. My question is. I’ve had two bad tenants in this unit and it is now neutral cashflow as i borrowed money against it to put into the PPR that we recently built.
I will call my accountant ansd work out how much CGT I will need to pay if we sell.
Cheers, Ryan
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