I have 13 properties and non that are possitive geared. Two have gone down in value since I bought them. One I bought off the plan in Maroubra for $548,000 and the agent said it could be sold for less than $480,000 (I owe $465,000).
The other I bought using vendour finance for the 20% deposit. I paid $535,000 two years ago and the selling value now is $450,000. My problem nere is I have to pay the vendour $115,000 in Feb 2006. I owe $400,000 on this one.
My total shortfall each month is $20,000 aprox.
I have my own ideas on what to do but any sugestions would be more than welome.
Wassalook at the values of the other 11 properties as compared to what is owed. You may find you can sell a couple of properties and have enough left over after capital gains tax and debt is paid to get yourself out of the dilema you are now in.
Hi Wassa,
It would be very difficult to give you any mreaningful input without knowing more about your situation eg what is the value of the other properties in your portfolio, what sort of LVR are they on and what would be the taxation implications for each one if sold. You need both a good accountant and a mortgage broker to assist you.
Regards
AlistairHi Wassa
You should try and make the best of the worst situation. Maybe worth considering selling one property that has appreciated in value and one that has depreciated in value. This way you can realise some funds to pay for your shortfalls and offset the capital gains of one property with the capital losses of the other and minimise any tax implications.Cheers
Pyramid
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