1. I have 2 tenanted but negatively geared properties in what are “good” Melbourne locations. But with a recent (unexpected) baby things have become a bit pressed with income down and costs up.
Clearly positive gearing would have prevented this outcome had I perhaps planned better – maybe I’ve now learned that positive gearing is likely to produce financial independence earlier than negatively gearing.
In the current market, with perhaps imminent rate rises, does anyone have any ideas as to my next move rather than go backwards which is how I feel at the moment? A natural recation is that I feel like selling up and starting again. If a professional adviser is needed who would that person be?
Any views would be appreciated.
Thanks.
Chris Ashdowne
Hi Chris,
How long have you had the properties? Is it possible that one or both have increased in value since purchase?
If so, one option could be to sell one and use the gain to pay some debt off the other. Depending on the figures, you may come close to a positive return or at least, take some of the pressure off your finances.
The first person I would consult about what to do is a good accountant experienced in property. they should be able to scrutinise your financial situation and tell you what options you have.
Good luck,
Sue [biggrin]“Be careful not to step on the flowers when you’re reaching for the stars”
G’day Chris. Welcome to the forum!
As Sue mentioned, the first thing to do is a good assessment of the existing properties, with a view to the overall situation without rushing into anything.
There are probably many options, I certainly wouldn’t rush into selling without having a good idea of how selling fits into the overall plan.
Feel free to contact me if you wish.
regards,
Rod
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