We own a property in Byron Bay that we have negatively geared.
The tenants are just breaking their lease to get into cheaper housing in a town a bit inland. The value has appreciated a bit since we bought 3 years ago, it’s a nice 4 bedroom place.
Questions we ponder is shall we lock in the interest rate and continue negative gearing?
Shall we sell and get less than expected some months ago?
How do I work out the best way to do this?[evo]
ParijatHi Pirijat,
That is a decision only you can make…however if you sold it and cut your losses, you could move on to bigger & better things. Maybe you’ll find a positive geared property that will more than make up for the losses incurred by selling it. Or maybe you will find someone who will rent it for more than the last tenants???We had a similar situation. We owned a florist shop. I was losing money keeping it and I haven’t got a lease in place for the building yet however there have been many inquiries and the rent we will get when it does go will be more than the florist made in a year. so sometimes we have to reevaluate where we are and where we want to go before we can make those decisions.
I feel so great now that I have let go. Good luck with your decisions and know that whatever you choose to do will be the lessons you need to learn at this stage.
Cheers
Dianne BurnsHi Pirijat,
I think Dianne has said it well.
If you can find a better deal then you can sell your current property and end this negative cash flow deal. You might end up some profits from this transaction.
If you have a better than they why not go ahead and cut your loss now?
The key point here might be just trying to find a better deal ASAP.
Just my humble opinion and I am not real estate expert
[biggrin]
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