Hi again all. Just wanted to get an opinion (again) on one of our I/P’s. It’s a first floor one b/r unit in a high rise at Broadbeach (I know I know, don’t buy high rise) that we bought brand new approx 4 yrs ago. It was our first venture into the world of I/P’s and I didn’t know then what I know now. It has always been rented out, (returns $250 p/w, may be able to get $270) but the problem is that it is only just starting to reach the price that we paid for it (paid $220000 incl furniture). It is neg geared and still has good depreciation left and doesn’t affect our budget too much as it really reduces my wifes tax, and we have a mixture of I/P’s that are neg, neutral & positive. As mentioned, it is starting to “come into it’s own” and with the Convention Centre happening soon, I’m hoping things should be bright at Broadbeach for the future. Just wanted to see if the majority would sell it or hang to it.
Thanx again
MartyGday Marty,
If at the end of the day it’s increasing your overall income, which by the sound of it, it is I’d hang on to it. Broadbeach has no choice but to go forward and long term there are bound to be reasonable gains in the unit.
While I would never buy sometihing like this knowing what I know now, I almost did, had that been the case, I would be hanging on to it for the time being(at least untill the benifits of depreciation run out!).
Hope this is of some help.Cheers
Scott S“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anonThanks Scott. I more than likely will hang to it in the hope that Broadbeach does have some good capital growth, which I’m sure it will. My only other concern was that there maybe too many high rise’s going up in Broadbeach (a fact I’m not sure on). Regardless, it is nice to hear (or read in this case)someone say what I was already thinking.
Regards
Martyhi Maximus, I’m no expert, but I’d hang on to it too. Sounds a nice little spot and a nice little earner, nice place to visit when you’re old and it’s all paid off, hang on to it! Kooringal
Hi again all. Just wanted to get an opinion (again) on one of our I/P’s. It’s a first floor one b/r unit in a high rise at Broadbeach (I know I know, don’t buy high rise) that we bought brand new approx 4 yrs ago. It was our first venture into the world of I/P’s and I didn’t know then what I know now. It has always been rented out, (returns $250 p/w, may be able to get $270) but the problem is that it is only just starting to reach the price that we paid for it (paid $220000 incl furniture). It is neg geared and still has good depreciation left and doesn’t affect our budget too much as it really reduces my wifes tax, and we have a mixture of I/P’s that are neg, neutral & positive. As mentioned, it is starting to “come into it’s own” and with the Convention Centre happening soon, I’m hoping things should be bright at Broadbeach for the future. Just wanted to see if the majority would sell it or hang to it.
Thanx again
Martymax sounds like its costing you money. I would sell it if I can’t get $270 min, if you can cover your holding costs for the life of the asset, with capital growth after CG tax. I would then reinvest in more conventional residential units, flats, townhouses, small developments etc.. that I expect may offer better capital growth. The high rise market is gonna be flooded and they can always build another.
Your call, in the final analysis
If more high riseare starting to go up then it possible that they may drag your investment down rather than yours helping the price of theirs up. If you think you can get out and find a more + cash investment why hang onto it. Sell it before the others go up and create a glut. (just an opinion) Will
Hi again all. Just wanted to get an opinion (again) on one of our I/P’s. It’s a first floor one b/r unit in a high rise at Broadbeach (I know I know, don’t buy high rise) that we bought brand new approx 4 yrs ago. It was our first venture into the world of I/P’s and I didn’t know then what I know now. It has always been rented out, (returns $250 p/w, may be able to get $270) but the problem is that it is only just starting to reach the price that we paid for it (paid $220000 incl furniture). It is neg geared and still has good depreciation left and doesn’t affect our budget too much as it really reduces my wifes tax, and we have a mixture of I/P’s that are neg, neutral & positive. As mentioned, it is starting to “come into it’s own” and with the Convention Centre happening soon, I’m hoping things should be bright at Broadbeach for the future. Just wanted to see if the majority would sell it or hang to it.
Thanx again
Marty
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