We bought a high end apartment in WA about 4 years ago for 780,000. We have it rented at 600 per week and a 300,000 mortgage at 1.5%. We have had an offer of 1.3 million – shoudl we sell now when the property although not making a great return is not costing us money, well tenanted and not any trouble and we do not need the cash right now? Is the WA market on the way up – we are based overseas and not really in a position to reinvest….shoudl we take our profit and run….
You borrowed $300,000 at 1.5%?
1.5% loan aye? [hmmm]
“Knowledge is Power”
Must be an overseas loan? Some Asian country’s banks have incredibly low interest rates (by our standards).
Or else a typo (7.5%)???
Hi, sounds Singaporean to me.
a) AUD is still very strong – highly unlikely to appreciate further against the SGD
b) tax : have someone calculate the tax for you. There’s an accountant in Singapore [at the Concord building]. He is very good. Ask his advice. He is also not expensive.Personally, I would take the profit and run but there are so many variables & you have to decide for yourself. The rental is very low vs the equity. Again, you need an accountant to help you work this out.
You can possibly locate Steve’s contact in the yellow pages. Look for Australasian Taxation Services.
The best advice I can give you is at least talk to him. If I had known about him before, I would have made tens of thousands of dollars more just from the taxation angle.
Good luck & well done!!
Kum YinHi Kum Yin,
You are right, is a Singaporean loan….I will look for the Concorde tax person you mention….I think I will have to base the decision on how it will affect me taxwise….
Thank youHi, the e-mail address is
[email protected]
Steve (can’t remember his surname) is the tax consultant. He used to work for Ernst & Young. Currently he does heaps of work for overseas investors.
Get an appointment & go to their office & TALK to somebody.
I now do sub-divisions in Adelaide although I still keep the NZ investment properties. I’ll be going to Singapore in November. A couple of young fellows (one was my PA) are keen to invest in property.
I’ll let you know when I go back & if time allows, maybe have a chat.
Cheers,
Kum Yin
You must be logged in to reply to this topic. If you don't have an account, you can register here.
