Hi Everyone,
I would appreciate your opinion on my situation here:
We have 3 properties:
Apartment in North Sydney – which has gone down in value. Rental is just making its interest payments.
Apartment in Meadowbanks – rental is just making interest payments too.
Town house in Marsfield – positively geared.All brand new, the only one that has gone up in value is marsfield.
We are thinking of selling marsfield and buying a house in north ryde. But should we sell the one that has done well so far (in terms of capital growth) or should we sell the least performing asset (north sydney) and buy a house?
Our thoughts:
1. marsfield is at its peak price, it may not go up any higher
2. if we sell north sydney it will be at a loss and we may missout on the capital growth (if any) in the next few years.Your thoughts and ideas would be very much appreciated.
Thank you
Charliebuying new property tends to depreciate rapidity for 3-5 years as the price includes development markups, so you’re lucky if they all haven’t decreased. Making a capital loss can be offset against other future capital gains, so not all bad.
If you sell marsfield @ a profit, you’ll be paying tax on the adjusted price adding back depreciation claimed, so it may not be as effective as you think.Can you afford to recapitalise the others & buy nth ryde, saving yourself transaction costs?
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