I have a property that only returns 4.4%. Is that too low? I have a loan on this. Should i sell ($120k) and use my money else where? was just worried that i will loose a few $$$ on selling and buying something else. I will make money on this property on its original purchase price.
Any thoughts?There is no too low or too high.
If the property has potential for CG then I would be happy with that yield.
What is your overall strategy? Work that out and your answer will be clear.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
the property has already gained a fair amount, rent was returning a good amount when i first got it. now, i just worked out it returns 3.9% after all expenses (bc, rates and so on). I am not making much from rent but i could make a better $$ from selling it now. On 1 $100,000 property in Victoria, buying and selling, how much do i actually loose in taxes and real estate fees? $10k?[goatee]
Of course you can get a higher return if you invest your money elsewhere.
Is it as secure an investment?
Will you get capital growth on top of your return?
Why don’t you think about keeping your property and invest elsewhere?
Draw the loan up as high as possible and use those funds to open a margin lending account and double it to invest in equities or managed funds?
Just some food for thought – certainly not financial advice.
Simon Macks
Residential and Commercial Finance Broker
[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.
that maybe better, as i will get taxed on my profits
cost 70 expenses maybe 20, so i would get taxed on anything above 90k that i sell it for.Real estate will take 7k should get taxed another 10-15k
I will loose nearly 20k on the sale. Is that correct?
Don’t forget that CGT is reduced by 50% if you held the proeprty for over 12 months.
The rate also depends on your personal tax rate. If that can be low then you will pay less tax.
I am not a fan of selling assets.
Simon Macks
Residential and Commercial Finance Broker
[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.
i think i will use the equity in its increased value rather than selling it; to buy another place that is of a profitable rate.
Originally posted by vyaw2003:I have a property that only returns 4.4%. Is that too low? I have a loan on this. Should i sell ($120k) and use my money else where? was just worried that i will loose a few $$$ on selling and buying something else. I will make money on this property on its original purchase price.
Any thoughts?What was the plan when you bought it?
What is the properties future potential re: Yield and Capital Growth?
“Money is a currency, like electricity and it requires momentum to make it Effective”
Online Positive Cashflow and Renovating CalculatorsThe % returns depends on the property value. Is this % from the begining or from the current value of the property?
Have you increased the rent in line with CPI?
Does the rent cover your payments?
Is the Property CF+?If you are making money from it then why sell.
If you have equity and from your posts you do then use that to invest elsewhere.
ChrisAll post are IMHO.
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