Greetings everyone,
So glad to find this forum and I've been browsing in this forum every day for 2 weeks now. I have to say it is awsome and inspiring with valuable gems everywhere! Wish I had access to these gems before my first foray into IP on 2003, but hey regretting won't change anything so I decide to only look at the lessons I need to learn
At the moment my wife and I are considering to sell one of our IPs. But we're still torn between selling it or keeping it and refurbishing it (it's
getting a bit dated and tired) in the hope to increase the rent - not so sure about this in the current rental market. Yesterday our long-term tenant decided to end the tenancy at the end of this month - so the timing is perfect for either selling or refurbishing.
I now look at this property as a bit 'unwise' investment as it is not +CF pre-tax and the capital gain is not that strong either, eventhough the location seems pretty good and close to all amenities. Obviously a valuable lesson to learn....
We are not actually in a position where we must sell, but, looking at the property cycle (was at Kieran's presentation at the last expo ) we want to be in a good position to acquire more IPs (this time, strictly +CF ones!) in the next few years.
The property is a 2brm unit with a car port (one in a block of 4) at Louvain Ave. Three Kings/Mt.Roskill.
Purchase price 185k
Mortgage 185k, Interest Only, fixed for 5 years at 6.9%
Registered Valuation (May 2003, at time of purchase) $195k
Registered Valuation (May 2005) $215k
Rent $260pw
Property Management 8%
Prior to the purchase at 2003, I setup an LAQC and a family trust. All IPs are bought under the LAQC, and the family home is still in gifting process to the
trust. However, upon purchasing this IP at Louvain Ave. with 100% mortgage, the family home had to be used as collateral... which kinda defeats the purpose of setting the family trust . That's another reason why we consider selling... to quickly release the collateral.
As a newbie, I'd really like to get some advice from the forumites to make a well informed decision... If you were in my position, would you sell or would you keep it?
Any comments and advice would be appreciated... thank you!
Andre
So glad to find this forum and I've been browsing in this forum every day for 2 weeks now. I have to say it is awsome and inspiring with valuable gems everywhere! Wish I had access to these gems before my first foray into IP on 2003, but hey regretting won't change anything so I decide to only look at the lessons I need to learn
At the moment my wife and I are considering to sell one of our IPs. But we're still torn between selling it or keeping it and refurbishing it (it's
getting a bit dated and tired) in the hope to increase the rent - not so sure about this in the current rental market. Yesterday our long-term tenant decided to end the tenancy at the end of this month - so the timing is perfect for either selling or refurbishing.
I now look at this property as a bit 'unwise' investment as it is not +CF pre-tax and the capital gain is not that strong either, eventhough the location seems pretty good and close to all amenities. Obviously a valuable lesson to learn....
We are not actually in a position where we must sell, but, looking at the property cycle (was at Kieran's presentation at the last expo ) we want to be in a good position to acquire more IPs (this time, strictly +CF ones!) in the next few years.
The property is a 2brm unit with a car port (one in a block of 4) at Louvain Ave. Three Kings/Mt.Roskill.
Purchase price 185k
Mortgage 185k, Interest Only, fixed for 5 years at 6.9%
Registered Valuation (May 2003, at time of purchase) $195k
Registered Valuation (May 2005) $215k
Rent $260pw
Property Management 8%
Prior to the purchase at 2003, I setup an LAQC and a family trust. All IPs are bought under the LAQC, and the family home is still in gifting process to the
trust. However, upon purchasing this IP at Louvain Ave. with 100% mortgage, the family home had to be used as collateral... which kinda defeats the purpose of setting the family trust . That's another reason why we consider selling... to quickly release the collateral.
As a newbie, I'd really like to get some advice from the forumites to make a well informed decision... If you were in my position, would you sell or would you keep it?
Any comments and advice would be appreciated... thank you!
Andre
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