Hi,
I desperately need advice.
I am new at property investing, having taken over from my dad two negative geared units, I now have two units with a mortgage of $ 275,000 at 8.95% fixed rate ( for another year ) on a 25 year loan remaining. The combined rent is $ 470 per week. Should I sell the units ( will approx. sell for $ 430 K pre Capital Gains ) and re- invest into a positive geared property or two.I also have a $ 335K home mortgage @ 6.24% ( 25 year loan ). I feel like starting over with the whole lot – what should I do ? Is it the right time to buy/re-invest ?
Also how much Capital Gains ( as a % ) do you pay on a sold property ? How is it calculated ?
And what is the average outgoings calculated as % for rental properties ?
Your feedback will be greatly appreciated
you should go see your bank/broker and see how much it will cost to break your 8.95% loan and take out a new loan around 5% or 6% then both those units will be cashflow positive
where are the units. by my working if all you owe after taking over from your father is the $275,000 then thats an 8.8% return. thats pretty good, and if you are in a growth area things can only get better with rents rising.
I know there is still talk of CF+ proprty, but I haven't seen a true one in a long time, so if it was me i would be hanging on and buying more if it dosen't put too much stress on you.
As for outgoings, how long is a ball of string, it really depends on rates, body corp, management fees and other such things. there is probably someone with a formula, but i find with units the outgoings can vary considerably.
Here is a link to work out your capital gains, i don't know if taking over from your dad means you have to go the 12 months again to halve it, but this should help you.
as for being driven crazy, i would say your ina pretty good place really.
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