YOUR POINT OF VIEW

What is it with all these investors who must sell as soon as they make a profit on an I.P?? What are you going to do with the money when you get it – reinvest it into other assets or blow it on ‘doodads’ that will be worth zero in about 2 years? sheesh!! [grrr]

By the time you add up buying and selling costs, adding back any depreciation claims onto the cap growth when you sell, then paying cap gain tax as well, you end with a whole lot less.

Not to mention that you miss out on any future cap growth because you don’t own the property anymore.

I think the figures are (please correct me if this is wrong) that only 5% of all investors own more than 2 investment properties, only 1% own more than 5 I.P’s, and about 30% of all investors buy 1 I.P and then sell it and never invest again.

Considering that 90% of the world is broke (most middle class people are 1 paycheck from broke), you don’t have to do much to be in the 10% of rich folk.

Keep the property and use the increasing equity to buy something else that will make you even more rich.

Anyone who is telling you to sell your I.P’s and buy a product that they recommend is giving you bad advice.

Cheers,
Marc.
[email protected]

“we get sent lemons; it’s up to us to make lemonade”

Hi nikikb

I would not sell it. As mentioned above, I would access some of the equity in this IP and use it as a deposit for another IP. Good luck.

Cheers, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively geared property into positive cashflow.
Phone: (02) 4984 9540

Talk to us about Wrap Training Joint Ventures.

at the moment there seems to be a small window till july 07 to be able to invest some of this money straight into superannuation where it would be taxed at a lower rate. It might be worth keeping this in mind when talking to a financial adviser or accountant.
A wise way to invest is to spread your money over various asset classes this is know as diversification or as the saying goes don’t put your eggs in the one basket. Another important point is what your risk profile is. Are you prepared to risk losing your investment and how would you recover from a loss. How much debt is on the other property is it worth paying down debt.

Comments are of a general nature and may not be relevant to your individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

I like Warren Buffet’s quote;
“Put all your eggs in one basket and watch that basket very carefully”.

By this he means to focus and become an expert in one field, and know all there is to know about it.
Knowledge is the best hedge against risk and loss.

Cheers,
Marc.
[email protected]

“we get sent lemons; it’s up to us to make lemonade”

On the subject of Warren Buffett , I like to remember a good quote that I recall after reading one of his books .

‘There is only two rules in business .

Rule no. 1 DON’T LOSE MONEY

Rule no. 2 DON;T FORGET RULE NUMBER 1′