I am a new property investor and I am unsure on how to play the game. I am currently building a new residential home in country WA, but I have an investment property in Wilson WA, 10 minutes from the PERTH CBD. I purchased the property 3 years ago and it is worth $100,000 more than what I purchased for. My loan for the property is principal plus interest. My aim is to pay off my home loan ASAP with investment property. Should I negative gear the loan or sell it and place the profit on the mortgage and invest in something else? The property is currently renting at $200 per week.[blink]
Do you expect this property will keep rising in value?
Can you afford to hold it?
If you sell it and see in say, another 5 years, that it is worth another $100K extra how will you feel?
Noone can give you advice on what to do. We can point out things to consider but at the end of the day it is your call.
Cheers,
Simon Macks
Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I would be looking at an Interest Only loan for the investment property (with offset if you want to reduce the interest expense).
Why are you paying principal and interest on an investment property when you have non-deductible debt???
TMA
http://www.email4money.info
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