Hi as no doubt you’ve heard many times, I’m new to this and thought I would ask some advise. Heres a scenario close to what i’m in.
Say I have a house in umm Victoria. I have a $60K morgage on the house. I brought it for $85K. Due to Circumstances I have not paid the morgage off as fast as I should have. I’ve just had an agent go through and say its worth about $150K at the moment.
I am now working up in NT. I don’t think I will be going back to victoria. Would it be better to a, sell it and use the money to start my investments. b, keep it and try and rent it out. c, have it re-evaluated and then take out a larger morgage to finance my investments and try and rent it out. (I think the last option isn’t the best, though I can’t remember why).
If you have any other ideas please let me know.
I know in the end its my decision and you guys don’t know all the details but it would be nice to have your opinion as well. If you would like further details I might be able to provide them
I do believe prices in the area will continue to rise (until they crash of course).
Thank you for any input
james
You haven’t told us what rent your house could achieve. Without this it is hard to say, also do you want CF+ properties, or are you willing to have some Neg geared, but high growth prop.???
Rgds.
Lucifer_auJames, if this house used to be your PPOR, remember that you have a 6 year window before you will pay any CGT if you sell (provided you don’t buy another residence to live in in the meantime of course).
On this basis, I would rent it out, and use it as the sprinboard into further investments. You have equity that you could access to buy another one, and presumably the rent should cover the mortgage you have left, so your first CF+ IP.[
]Cheers
MelKeep it( refinance as much as possible), rent it out, move on and buy another.
Timbo
hi james
as others have said it depends on what rental you are getting. or even where the home is ? , if you mentioned where it is we might be able to comment on the areas potential.
but if you decide to sell then i’d buy something cheaper perhaps 2 or even 3 ones that will show a higher return but have similair capital growth options. the thing i feel is you don’t want to leave the property market altogether. even if there is a drop long term it will rise again.
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
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