All Topics / Help Needed! / MY SCENARIO!!! WHAT WOULD YOU DO?
Im new to this forum but have read a few posts here, quite interesting.
Ive got a scenario i wish to get advice from
I have my own property in which i owe 100k on and i have another property that i have just finished subdividing with my father, in which it owes me 350k for my block (we done a 2 lot subdivision) and i could possibly sell it for 650k , so if i sell i could pay the house off and have 200k in bank,
if i keep it ill have a total 450k debt and probably have to pay interest of about 30k a yr (i only get 150 a week from rent on that property, its only a granny flat)
i do speccies and thats how i make my money, building spec homes, and that was the first subdivision, quite lucrative, i would recommend subdividing to anyone
any other time i would ust sell and take the profits, but its in a good area that got not much supply and heavy demand, BUT
im trying to work out if it will achieve a capital gain of at least 30k a yr , plus if i had the 200k in bank i could make money on that or use it to do another speccie
im very cautious with interest rates at the moment and i dont want to have to much on the go and leave myself exposed.
im trying to work out if this is a property to hold on to, could be good capital gains in the future
so…… here it is in short
PPOR WORTH 450K OWE 100K
INVESTMENT PROP WORTH 650K OWE 350K RENT 150WKdoing the numbers it would have to go up at least 40k a yr to make it worthwhile. could anyone see that happening
id love to hear your thoughts,
markus
I’m a little confused…
You have a granny flat that could sell for 650K?!
It is hard to know about capital gains, because some areas of Aus are going down or sideways with their growth, but others are going up (in mining areas etc…). I imagine it may depend on the area and maybe also whether your property is a median house or the up-end of the market in the city/suburb/town where it is.
You also need to take into account the selling costs such as CGT and exit fees, agents fees and solicitor fees etc.
Maybe it might be worthwhile to sell, pay off the home loan and then do another project. But you could also do something else, possibly, even if you held onto it.
Terryw
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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