All Topics / Help Needed! / to sell or rent my apartment on the gold coast

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of lukerhlukerh
    Member
    @lukerh
    Join Date: 2007
    Post Count: 1
    May 22, 2008 - 10:40 am

    I have recently had to leave the coast due to work commitments, i have a 3 bed 2 bath 2 storey apartment only 100m to the broadwater, i have recently renovated the bathroom (retiled floor to ceiling) and freshly painted the whole apartment, new window furnishings etc.

    I bought the apartment for $317k 3 years ago on an interest only loan which i currently owe $240k I pay approx $1900 p/mnth in interest only.

    I had it valued at between $420- $440k last sept, when i put it on the market in April it was revalued at $395k as interest rates had caused the market to drop.

    Last week the agent called me to reduce the price to $385k… I am now thinking that maybe i should rent it out for a while instead of selling, i was advised whilst playing golf by a guy who seemed to know his stuff that as i am working away from home if i rent it out i could claim the interest im paying on the loan on tax??

    Can anyone advise me on this type of thing and whether you would sell or keep the property for a whle longer… i would appreciate any feedback supplied.

    Thanks,
    Luke.

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404
    May 24, 2008 - 9:03 am

    Hi, if you rent it out you can certainly claim the interest (and strata fees, rates and any other costs) as tax deductions.

    How much rent do you think you will get?
     Work out what your outgoings (interest, strata, etc) minus rent will be.  Don't forget to take out the agents fee (unless you self manage).
    This is the amount you can claim on your tax. Depending on the age of the apartment you can also claim depreciation.

    Also do you expect Capital gain in the coming years? If so take that into account too.
    Once you work out the figures you can assess whether it is worth keeping.
    good luck.

    Profile photo of units4meunits4me
    Member
    @units4me
    Join Date: 2005
    Post Count: 90
    May 25, 2008 - 12:29 pm

    If you decide to keep it and rent it out, do it for the long term, because capital gains tax becomes a factor then.

    Profile photo of elkamelkam
    Member
    @elkam
    Join Date: 2006
    Post Count: 722
    May 25, 2008 - 1:17 pm
    units4me wrote:
    If you decide to keep it and rent it out, do it for the long term, because capital gains tax becomes a factor then.

    Not for nearly 6 years unless you buy yourself another home elsewhere.

    Cheers

    Elka

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