Hi Everyone… Just looking for some advice/opinions to help me decide what to do in the future!
My Situation is as follows:
Currently building house to be finished in approx 6 months.
Total house/land loan approx $295,000.
Will stay in the house for at least 6 months after completion to get FHOG and to finish things off (carpets curtains landscaping etc)
After this point, i was initally going to sell and build again (hoping to realistically walk away with $100k in pocket after sale).
This was to be repeated a few times until i had enough cash to own a fair chunk of my own home in a suburb that i liked, at which point i would use the equity in my own home to help purchase investment properties.
After reading through hours of post on this site, i feel that i might regret getting rid of the home that i build, as it is in an area that is currently experienced great capital gains.
The problem with holding on to it is that i work miles away (90 minutes or more)… and if i were to rent it out then i would still be left with around $260 per week in repayments (approx $500pw repayments – $240pw rent income), which would make it hard to get further finance to aquire more investment properties.
It is my dream to accumulate a comfortable portfolio of properties and eventually work fulltime in property investment – it is my passion!
Any suggestions / comments / personal experiences would be greatly welcomed!
Thanks All!!
Lyndon [specs]
Hi Lyndon,
I can empathise with your situation, I am currently living/developing about 75min away from my work and its a bit annoying to say the least. Especially with petrol prices at the moment!! [crying]
The thing is, its my work that is actually in an inconvenient location (Kwinana for those WA folks), rather than the property which is in a really strong “north of river” CG suburb.So, is it work that is far away from the property, or the property is far away from work? Your frame of reference will help in your decision as to whether or not you sell the property or retain and refinance.
This is on top of the associated economical analysis (ie CGT on the sale 100K x (1-Tax Rate), and other closing costs).
Personally, I would (and am) retain and refinance. Have a read of Michael Yardley’s new book if you get the chance, its a very interesting read.Best wishes
Chris
Do what you were planing in the first place thats how i have made most of my money
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