- eliseyParticipant@eliseyJoin Date: 2009Post Count: 40
I'm currently having abt 1 mils debt (loan). All the properties which I own is negative gearing.
If I keep holding these negatively-geared properties, I may have to wait for a long time for it to turn to positive cash flow or to replace my income.
I am currently thinking of selling some of the properties to reduce the debt and use the fund (after selling) to purchase a better property. However, Im not sure if it is a good idea to sell now as the selling price now will not cover all my loses.
ThanksJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
I wouldn’t be keen on selling a property if the proceeds wouldn’t be enough to cover my costs.
Is their anything you can do to it to add value before you sell it?
JamieRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Have you considered selling the properties on an instalment basis or thru Rent to Buy basis.
Have a chat to Paul Dobson from the forum who assist form members do just that.
A search on past posts on "wraps' or instalment contracts" should bring up Paul's details.
Yours in FinanceTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213eliseyParticipant@eliseyJoin Date: 2009Post Count: 40
It is a house n land package. New house, therefore, nothing much to add value to.
I will look into Paul Dobson.
ThankssonyasalMember@sonyasalJoin Date: 2008Post Count: 421
what loan structure do you have?are you paying principal and interest or interest only? Are you claiming depreciation?Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Good point – a depreciation schedule on a new property like yours is going to provide a tidy return. You could also look at submitting the ATO’s PAYG variation form (assuming you’re a PAYG earner) and claiming your property deductions each pay as opposed to one lump sum at the end of the financial year. This will assist with cashflow.