I bought a weatherboard house in new lambton in 1997 and have been renting it out for $250p/w since 2000. It is a bit run down now and might be worth $340000. I have finally paid out the loan of $140000 and currently do not have anyone in it. Obviously I want the best possible return on my investment but where to from here.
1) Do I simply sell it, pay my CGT and pocket maybe $100000
2) Do I risk the expenses of renovating in an attempt to pocket $150000
3) Do I knock it down and spend another $250000 to rebuild and the rent it out again for $400 pw
4) Do I just simply keep renting it for $300 pw
I have read the book 0 to 260+ and am really keen to get cracking.
Thanks
PaulHi Paul, welcome to the forum!
If I were you I would spend minimal amount on fixing the property up to rent it out again. I would then purchase another property with the equity, then either use the extra income from property 1 to help pay down property 2, or just borrow again for a 3rd property etc…..
Unless you needed the $100k for some other reason (paying off mortgage, not tax deductible…etc), then there is no good reason to get rid of an asset that is putting $$ in your pocket!
cheers
Tracy
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