All Topics / Help Needed! / How to reduce debt?
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
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 MeMortgage Broker assisting clients Australia wide Email: [email protected]
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
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 MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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
what loan structure do you have?are you paying principal and interest or interest only? Are you claiming depreciation?
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 MeMortgage Broker assisting clients Australia wide Email: [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.