Hi Dino Livanidis here from http://www.npis.com.au.
If your property has gone down in value, the first thing you have to find out is where you got your valuation?Just remember, dont relate to sales that have happened because people had to sell due to financial problems.
Many people panick and just want to sell a property for the sake of just selling.
Plus many Banks will under value a property to protect themselves.
I remember years ago when I had a valuation done on a property in Sth Yarra, Melb.They valued the property $80k under what I had purchased it for, but at the time all properties
were returning approx 4-4.5% rentals. With this valuation it made the property return a 6%
rental, so I asked the Valuer if he could find me another property with a 6% rental.He couldnt and he told me secretly that everyone is undervaluing properties.
I ended up selling the property for the price I was after and more a year later.You would have done all your calculations before you purchased the investment so what has
changed? Remember interest rates are coming down so it will cost you less to hold.
So in relation to your property dropping in price, if you can hang in there and hold it for the
long term.Hi Dino Livanidis here from http://www.npis.com.au.
If your property has gone down in value, the first thing you have to find out is where you got your valuation?Just remember, don't relate to sales that have happened because people had to sell due to financial problems.
Many people panic and just want to sell a property for the sake of just selling.
Plus many Banks will under value a property to protect themselves.
I remember years ago when I had a valuation done on a property in Sth Yarra, Melb.They valued the property $80k under what I had purchased it for, but at the time all properties
were returning approx 4-4.5% rentals. With this valuation it made the property return a 6%
rental, so I asked the Valuer if he could find me another property with a 6% rental.He couldn't and he told me secretly that everyone is undervaluing properties.
I ended up selling the property for the price I was after and more a year later.You would have done all your calculations before you purchased the investment so what has
changed? Remember interest rates are coming down so it will cost you less to hold.
So in relation to your property dropping in price, if you can hang in there and hold it for the
long term.Is this the same Dino?
Hei dino… hate to say.. but your website looks ridiculously useless
another spruiker from hellHi mrh,
Have you established a PAYG tax variation form for this property?
No one else appears to be mentioning this – but I won't assume you know what it is.
The process around this form is that you fill it out (perhaps with the help of a good accountant!) and put in your outgoings and incomings for the property. This is then forwarded to the vampires (sorry, I mean tax office) and they then forward a letter to your pay office to only tax you at a lower amount.
This is best suited if you are a full-time employee and not a contractor type employee who has part-time or occassional work all over the place.
Anyhow, you have probably performed your annual tax return and received a nice big cheque from the tax office to assist with your losses. In the case of using a PAYG tax variation form, you get this money back each pay-day – so this may help with your cash flow issues on this IP.
Yes, I suggest you do all you can hold this property for the long term. Apart from the PAYG tax variation form, look at eradicating bad-debt or holding off on 'life-style' aspects – but just for a year or two!..
Good luck.
Hold on my friend. Property is a long term investment. it goes up, it goes down. It does in the long term go up, and i agree with the other person's comments about forced saving.
My only property investing regrets have been things I've sold, and opportunities I've missed out on because I got cold feet. Even my average performing investment properties even though have come good a little later than some of my better ones, have given me something else that was worth it, experience. Hope this helps.
NN
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