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  • Profile photo of magic32magic32
    Participant
    @magic32
    Join Date: 2005
    Post Count: 49

    Rather than keeping the first IP and buying a second IP, do you think it’s better to sell the first IP, and then buy a higher value IP. e.g. first IP is $300,000 in value, if I don’t sell it, let’s say that I have the capability to buy a second IP for $300,000. But if the first IP is sold, I could buy an IP in a higher capital growth area for $600,000. E.g. first IP is in an area with historic capital growth of 5% p.a., sell it and buy an IP closer to the city with a historical capital growth rate of 6%.

    I know some will say never sell, but do you think this is a good strategy, that even though there is CGT and more stamp duty, it might be better long term when the capital growth is increasing at a quicker rate.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Hi magic

    I think you half answered your own question when you stated that there is Stamp Duty and CGT to consider.

    If you factor this in and believe that the higher price IP will provide you with a better rate of return over the longer term than Yes i guess it is worth considering.

    Personally not my style of investing but everyone is entitled to their own opinion.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of tom123tom123
    Participant
    @tom123
    Join Date: 2013
    Post Count: 91

    your going to sell for a 1% more capital gain? that isn’t even guaranteed. i suggest not selling.

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