Hello all
We are thinking of selling one of our IPs. We purchased this property 3 years ago and have made great CG.
The reason for selling:
1. It requires ongoing maintenance due to age;
2. use funds to pay off our holiday home. As we
do not rent it out – no taxable items.By paying off our holiday home this would release $10,000 pa enabling us to purchase additional IPs at a faster pace. We would also prefer to purchase IP no more than 5 years old.
What do you think about this strategy?
PS
Renting the holiday home is not an option we would consider.Also the property that we will be selling has averaged 9.5% CG pa over 10 years.
[biggrin]
Sounds like a good idea but remember you have to take in Captail Gains Tax when you sell.
If you sell and what left after REA, Legal and TAX is going to pay off the holiday home sounds good.
ChrisAll post are IMHO.
Big M,
you have obviously done the maths on this query!Yes?Cheers
C@34
Marisa,
We were in the same position as you a couple of years ago. Numbers didn’t stack up after agent fees / CGT etc so we very reluctantly began renting out the holiday house. Hasn’t been an issue for us. Our reluctancy was unfounded.
We didn’t want to pay all the fees and taxes in the sales process, and also missing out on the future growth of the place that we were contemplating selling.
Worked out good in the end.
Cheers,
Dazzling
“Go hard or go home”
Hi Marisa
Without knowing much about your future goals via property, I would be reluctant to sell a property which has grown above the avarage growth rate.
E.G. property worth $350k…annual growth rate of 9.5% = $33250 (on avarage). Surely this is far more than any maintenance required per year. That amount is also greater than $10k p.a too.
Why not consider redrawing equity to fund further purchasers?
Cashflow funds your lifestyle…equity makes you WEALTHY!![thumbsup2]
Cheers
Oscar
You must be logged in to reply to this topic. If you don't have an account, you can register here.
