I have a property that cost $227,500, is refinanced at $233,100, and I receive monthly rental of $1,020 per month. Current value is $263,100. Location is Brisbane.
If I sell this property I would have no investment properties. Is it advisable to sell or to keep this one?
Hey Kathy,
What do you reckon??? Should I buy myself a block of chocolate or a block of flats next time I go out??? [blink]
If you’re thinking it’s personal choice, and based on my own set of financial circumstances; then BINGO. You’ve just answered YOUR own question!!! [blush2]
Your ONLY investment has a return of 5.4% and no doubt you are probably paying interest at the variable 6.95% (correct me someone)…is this manageable, yes or no??? Bear in mind, that you have also had a 15% CG in value (from 227,500 to 263,000) which for many investors is a major bonus. Hardly anything to be scoffed at now is it???
What EXACTLY do you expect people to tell you here???
The bottom line….it is up to you, it’s your property, and you’re the one that has to pay the mortgage repayments every month; so it HAS to be YOUR CHOICE!!!
Good luck,
Jo
Hi Kathy,
I am an unashamed believer in holding long term so I am somewhat biased in my comments.
There are a couple of issues you do need to consider when determining what is the right course of action for you.
Initially there was a purpose for buying this investment property. If this purpose is still valid and the property is meeting the aim then hang on to it. Bear in mind that the same property will be considerably more expensive in the future.
If you find that the either you goals have changed or that your needs are different then a sale may be a prudent course of action. However when analysing this you will need to factor in such matters as CGT liability and agents fees etc and, most significantly, whether or not you can put the money to better use.
But back to my initial comments – Peter Spann sums it up when he says sell if you get an offer too good to refuse, if your property is underperforming or you can put your money to better use.
Derek
[email protected]Property investment advice and researched property in quality locations available.
Hi Kathy,
I’m with Derek, hold long term if you can, and as your equity increases you could buy another. Then the whole process repeats itself as equity rises with each new investment you buy. This may take awhile depending on the market but you can see it’s Magic.[thumbsup2]
Your choice though, as everyones situation is different.[biggrin]
Regards,Sharon
Why wouyld you sell? Do you have somewhere else to invest, or are you just thinking this one isn’t performing?
I am like Derek, and like to hold on for the long term. But if this one is not performing, then it may be better to sell and invest elsewhere. But first, are you sure it is not performing?
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | 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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