I have a property that I rent out at $720 per week with a mortgage of $260k house valued Mid $400K I have had it for almost 3 years cost me $300k.
Should I sell and cash in or keep for another boom and enjoy the positive cashflow?
I have other properties with similar figures.
Thats a great return. how do you get $720pw rent on a property worth $400k?
I sell my positive cashflow property all the time. It all depends on whether I can make more money by holding onto the property or by using the money to buy something that is going to make me more money.
I bought a property 3 years ago for $540,000. It currently rents for about $1200 per week. I've got it on the market at the moment. Why? Because it is worth $1.2M now and I can use the money from the sale to pay off the loan and a line of credit and leave a cool few hundred thousand in the bank. So I miss out on the theoretical $100grand in capital growth each year (on the presumption that property doubles every 7 – 10 years) plus the $10 – 20,000 pa in income, but I can use the money in my account to develop properties that will bring me a 100% cash on cash return, making me well over $300g per year.
Does that make sense?
It is all mathematical to me. Where will I make the most money? By holding on to the property or by realising some capital gain and putting it into something else that will make me even more money.
Cheers
K
Hi mita-nz,
If I plan to sell I let you know. Have a few of these properties.
Make sense Linar – thinking the same – just scared I would regret it.
eldredni
Linar wrote:I sell my positive cashflow property all the time. It all depends on whether I can make more money by holding onto the property or by using the money to buy something that is going to make me more money.
I bought a property 3 years ago for $540,000. It currently rents for about $1200 per week. I've got it on the market at the moment. Why? Because it is worth $1.2M now and I can use the money from the sale to pay off the loan and a line of credit and leave a cool few hundred thousand in the bank. So I miss out on the theoretical $100grand in capital growth each year (on the presumption that property doubles every 7 – 10 years) plus the $10 – 20,000 pa in income, but I can use the money in my account to develop properties that will bring me a 100% cash on cash return, making me well over $300g per year.
Does that make sense?
It is all mathematical to me. Where will I make the most money? By holding on to the property or by realising some capital gain and putting it into something else that will make me even more money.
Cheers
K
Hahahaha 1.2M, that must be a doggy RE agent doing his/hers rounds. You will be lucky to sell that for 600K.
I may be wrong and dreaming does not cost a cent so good luck.
Clones
Its a block of flats. That's the bank valuation.
You are wrong you ignoramus.
Linar wrote:Its a block of flats. That's the bank valuation.You are wrong you ignoramus.
Ignoramus, sorry Liar, sorry again Linar,
Is that a block of flats, because with a rent of 1200 a week it must be only two or three flats or are you just bluffing?. Anyways, good luck you may get 600K if you have the remote chance of selling it.
Clones
clones smells like scamp!
flaming is against the rules, cut it out girls
clones wrote:Linar wrote:I sell my positive cashflow property all the time. It all depends on whether I can make more money by holding onto the property or by using the money to buy something that is going to make me more money.
I bought a property 3 years ago for $540,000. It currently rents for about $1200 per week. I've got it on the market at the moment. Why? Because it is worth $1.2M now and I can use the money from the sale to pay off the loan and a line of credit and leave a cool few hundred thousand in the bank. So I miss out on the theoretical $100grand in capital growth each year (on the presumption that property doubles every 7 – 10 years) plus the $10 – 20,000 pa in income, but I can use the money in my account to develop properties that will bring me a 100% cash on cash return, making me well over $300g per year.
Does that make sense?
It is all mathematical to me. Where will I make the most money? By holding on to the property or by realising some capital gain and putting it into something else that will make me even more money.
Cheers
K
Hahahaha 1.2M, that must be a doggy RE agent doing his/hers rounds. You will be lucky to sell that for 600K.
I may be wrong and dreaming does not cost a cent so good luck.
Clones
Did you have to do any improvements on this property?
Are you going to sell now? As you have made such a property?
Hi eldredi
I'm happy to go into more details if you want to PM me. This post has rapidly gone off the subject and degenerated into what just about every post degenerates into these days – doom and gloom and market crashes.
Cheers
K
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