hi all
some thoughts please my fiance and i have 1 ppor each and 1 ip each so our thoughts are sell her PPOR as it has appreciared very nicly and pay down the debt on the IPs to get them to a positive position the other 2 ips have also had great gains as well so as an over all investment they are ok but would like them to be makeing money for us aswell or we could just sell her ppor and then buy +ve properties with the gain we make of as least 120k
your advice please
thanks gazzaa[
][]Hi Gazza
Sounds like your thinking is on the right track! I say go for it as long as you both believe your relationship is gowing to grow.[
]Regards Bear
Has the loan on your ppor been paid off? Since the interest on it isn’t tax deductable you may get a better return.
Josh
hi josh
no my PPOR STILL HAS ALOAN BUT ONLY 18K TO GO .SO LOTS OF EQUITY 250-300K SO HAVE SOME ROOM TO NEGOTIATE WITH THE BANKS NEXT TIME WE WANT TO BORROW. WHEN YOU SAY BETTER RETURN ARE U SAYING TURN THIS INTO IP ?
TO BEAR THANKS FOR THE ADVICE & ENCOURAGEMENT RE OUR RELATIONSHIP GETTING MARRIED AUG 04 SO ID SAY GOING THE RIGHT DIRECTION[]
OTHER INFO THAT MIGHT HELP SOME IDEAS COME TO THE FRO
MY PPOR LOAN 18 K VALUE 300K
HER PPOR “” 171K ” 330K
#1 IP “” 190K ” 340k INCOME 12K OUTS 15K
#2 IP “” 171K ” 290K INCOME 12K OUTS 13.5K
KEEP THE IDEAS COMING
MANY THANKS GAZZA[][]Hey gazzaa
You forgot to turn caps lock off after PPOR!!
If you plan to sell one of the PPORs, I would definitely as a first point pay off the remaining loan on the other one. This is non deductible debt, and should be vanquished!!!
Then you have the choices to find +ve properties that will offset your -ve ones, or pay some off the IPs. If you can find good properties that are +ve, I would buy one or two or three of them (you could even put down larger deposits), and aim for cashflow from them.
If you have a long term strategy, and are willing to hold for at least 10 years, then you will ride through this end of the boom, and be into the next one. My strategy is that the more properties I have, the better off I am when there is growth – 5% growth on $1Mil worth of properties is $50,000. 5% growth on $200,000 is only $10,000. (That is the ‘predicted’ rate of growth in a down market). If your holding costs are nil, then more property is better.
Cheers
Melhi all
thanks for your thoughts and advice
will still be selling 1 and paying the bad debt off first then will see whats happening in yhe market
again many thanks for the replies
gazzaaYeah, what mel said!
I mean you’d get a better return on paying of the ppor loan as it isn’t tax deductible you are saving more. ppor loan has to be paid with after tax dollars so at the highest tax bracket you are saving kinda twice the interest rate. ie 14%, hard to beat.
If you find it hard to get pos cash props, pay down your ips to be positive and use the equity to buy more props later. (mel has some good ways to do this, cause lets face it we all wanna be like mel.)
Josh
Aw Josh, you’re a sweetie[
]Cheers
Mel
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