We own a property in Ballarat which we have recently moved out of, listed for rent and have moved to Melbourne in an apartment which we have bought. The apartment now seems too small and we need to get something bigger. Would someone please advise if we should rent this property out or sell?
Hi,
That’s a lot of !!!!!… you must need some serious help [biggrin]
The decision to keep vs. sell is always hard, but here are some issues to think through.
1. Personal vs. Investment?
How emotionally attached to your Ballarat apartment are you? That is, do you plan to move back there on day, or, at the other extreme, is it only about what return you can achieve?
For example, you may like to keep the apartment if you have a child who may like to live there while studying…???…
2. What can you do with the money?
It is a relatively emotionless exercise to work through what is the best financial decision as you can compare the result of one outcome against another. For example, you may find that you earn a good return using your after-tax investment profits to pay down your personal mortgage on your Melbourne apartment due to the impact of pre-tax and after tax dollars.
Seek the help of a professional accountant if you aren’t sure what to do.
3. Tax consequences
There could be some reasonably complicated tax issues associated with selling a home that has been previously rented out, so, before you enter this realm, it would be wise to seek some advance-tax planning advise about your options.
Well, that’s a few points to note to get you started. Does anyone else have words of wisdom to add?
Thanks for your post and have a great day.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Many thanks for the advice, Steve.
Are you (or any other member) able to recommend a good Melbourne accountant to us? The previous two accountants/financial planners whom we have seen appeared to have been more interested in selling us products with which they were associated.
We have tried being contrarian thinkers but this approach too has its pitfalls.
Thanks again.
Sure,
I use Mark Unwin. You can get his details from http://www.wp.com.au
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks, Steve.
We have emailed Mark to arrange to meet.
Mark is definately one of the better accountants out there!!!
TMA
http://www.email4money.info
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