Thanks for the advice everyone…I also have considered the fact that the banks may value the property at less than we have paid for it..and that would force us into walking away…maybe that would be a good thing. One Q, would that count as a capital loss, that we could offset against future gains? I will be looking for a good property valuer recommendation from someone on this forum, and get their opinion. I do know that if a bank is prepared to lend us the money, we could service the loan, and (if my calculations are correct) we would be down about 6 grand per year after tax refunds etc…this is a relatively small % capital gains per year on the unit (but I suppose that is if it starts off at the price we paid for it and we are not paying catch-up). Anyway, lots of options, stiff upper lip and all that, thanks for the help. I’ll be back for more advice in the near future, of that you can be sure.
Andy,
There is one who frequents this site that has a wealth of knowledge and contributions to many disucssions on this site – Depreciator
I have also used Washington Brown in Melbourne (although they are national) who were quite good as well.
One Q, would that count as a capital loss, that we could offset against future gains?My understanding is (others will confirm/contradict), is that you would need to settle ie own the asset and then sell, with the difference (if selling price is less) being able to be claimed as an offset against capital gains or future capital gains.
As you stand today, you don’t actually own the property. The transfer of title only happens at settlement so walking away ATM, the $50k that you have deposited would be lost!
If that is correct, then that makes the valuation critical….Let us know how you go….
Thanks Woodsman, good advice.
Are the valuations provided by good valuers a true reflection of the market? I mean, I will probably make a big decision based on their assessment, so I have to know I am obtaining accurate info. I know the market can fluctuate up and down..but I need figure I can rely on.
I’ll contact depreciator…see if he/she has any advice.
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