Basically people I'm 23 years old, first IP at 17, second at 18, i now live in the first. Im under a lot of stress atm and if I sell my 2nd IP I will be virtuallly if not completely debt free. and own my current house outright. Is it worth the extra stress to keep the property? or be glad to reep the rewards of my success and get back into investing in a few years when the rest of my life is under control.
Assuming you are still very young from your post, to sell the second I.P and leave you debt free would be a fantastic result for your age. There may be cap gains tax to pay, but even so; well done.
You can then use the equity in your PPoR for more investments, and the interest on those loans will be tax deductible.
Of course, in the long run it would be better if you could tough it out for a bit longer and hold the 2nd I.P, but investing should be fun as well as finacially rewarding.
cheers for your comment, put it on the market today and feel instantly releived
Rule 1 Never Sell
Rule 2 You make money when you buy
Rule 3 Start at Rule 1Right now sacrifice you can do it. Trust me I've been there and it ain't worth the short term satisfaction of selling.
You will probably never be able to buy that property again for the price that you did.
Sure there is a lot of missing critical information from your post. But speaking generally do it while your young. Latter on down the track you may have very real financial reasons for making these decisions.
I think this is something that has been posted before. You've got to have as many dishes out in the rain if your plan to make your business storing the water that is capital gains.
Look at the figures on paper, how much is it going to cost you to own that property over the next 12 months? Whats the capital gain going to be over the next year to 5 years. Whats your return on investing the cost over a year. $3000 over a year for a 10% gain on $300,000 $30,000 for example. And then $3000 the next year for a 10% gain on $330,000. If you read the papers in Brisbane for example predictions are of growth 30-40% over the next 3 years. You would want to miss that?
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