Hi, I have two properties, a unit which I live in, and a 3 br house which I rent out. The house is positively geared, but the unit is negative.
I have thought about selling the unit as the capital gains have almost doubled in the last year since I have owned it, but my friends (also property investors) tell me to hang on to it as the market is still rising.
[confused2]
Any suggestions?Cheers,
Andy Turner.
How is the unit negative geared if you live in it.
Prices are pretty stable at the moment however many people agree they will rise again. With cycles averaging 7-10 years we may see movement in 5 years or so.
Factor in selling costs and buying costs and decide whether it is better to keep it for the next growth period. This is probably what I would choose to do. I am of an age where I have bought and made money and then sold. Only to see the next boom roll on by and not be well placed. I wish I had never sold.
The bottom line is really whether you need the money and whether you can invest it better in the meantime to get strong growth?
All the best
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[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.
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