I am fairly new to property investment and am 34 yrs old have two inv properties in New Zealand in larger regional towns/city, have followed a 11% gross rental yield as my framework for investing, now wish to be more aggresive with the equity i have generated, and am weighing up whether to sell property one or refinance on it. currently have positive cashflow on both, but dont wish to overextend with rising interest rate and declining capital gains climate
property 1
purchase price $87500 2 years ago
current rental $170 pw
current valuation $130000
no debt outstandingProperty 2
Purchase price $70000 bought 2 months ago
current rental $130 pw
debt $55000your thoughts
if you sell you will give a lot of your capital gains to the government as tax.
not so if you use equity to borrow for more properties.Just work out how close to the wire you want to gear yourself.
Cashflow positive properties on fixed interest loans would negate most of the limiting concerns you put forward.
But you will have to look at all the aspects of your life family, your income, your GOALS (VIP), your stress levels (SANF),
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Live, Learn and GrowLifexperience
no cpaital gains tax at the moment on property in NZ i am tax resident in the UK so shoudl avoid this,
good call on the fixed interest deals currently they look attractive and limit your unknown risk to vacant tenants
hey nah
If you think the growth has finished, it may still be better to keep it because of the yield, but if you think values could decline, maybe better to sell and buy elsewhere, or ivnest in a different area.
Terryw
Discover Home Loans
Mortgage Broker
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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