All Topics / Help Needed! / How to reduce debt?

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of eliseyelisey
    Participant
    @elisey
    Join Date: 2009
    Post Count: 40

    Hi all,

    I'm currently having abt 1 mils debt (loan). All the properties which I own is negative gearing.

    If I keep holding these negatively-geared properties, I may have to wait for a long time for it to turn to positive cash flow or to replace my income.

    I am currently thinking of selling some of the properties to reduce the debt and use the fund (after selling) to purchase a better property. However, Im not sure if it is a good idea to sell now as the selling price now will not cover all my loses.

    Any advice?

    Thanks

     

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Elisey

    I wouldn’t be keen on selling a property if the proceeds wouldn’t be enough to cover my costs.

    Is their anything you can do to it to add value before you sell it?

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Have you considered selling the properties on an instalment basis or thru Rent to Buy basis.

    Have a chat to Paul Dobson from the forum who assist form members do just that.

    A search on past posts on "wraps' or instalment contracts" should bring up Paul's details.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Do you have non deductible debt?

    If selling consider the CGT consequences – of loss consequences.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of eliseyelisey
    Participant
    @elisey
    Join Date: 2009
    Post Count: 40

    Thanks guys.

    It is a house n land package. New house, therefore, nothing much to add value to.

    I will look into Paul Dobson.

    Thanks

    Profile photo of sonyasalsonyasal
    Member
    @sonyasal
    Join Date: 2008
    Post Count: 421

    what loan structure do you have?are you paying principal and interest or interest only? Are you claiming depreciation?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Good point – a depreciation schedule on a new property like yours is going to provide a tidy return. You could also look at submitting the ATO’s PAYG variation form (assuming you’re a PAYG earner) and claiming your property deductions each pay as opposed to one lump sum at the end of the financial year. This will assist with cashflow.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

Viewing 7 posts - 1 through 7 (of 7 total)

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