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I've ended up selling one property (not the one I was referring to, as the CGT would've been a lot, but one which had gone up a fair bit but I hadn't owned for as long). Selling this will enable us to pay off the rest of our PPOR as well as own one IP outright, and the other only with a small...

Sorry it still doesn't make sense. Why would you want to continually rack up debts all your life? And what bank would continue lending to you? Eventually they want their money back.

This doesn't make any sense. Then you are just left with a bigger debt to pay off. It's the classic "living beyond your means". Eventually you have to pay it all back. The only way to do that is to sell the place, and then you'll incur CGT anyway.

Well I've done the sums and I don't think it would be worth it as it looks like I'll be up for around $40,000 CGT and my wife would lose family tax benefits for the year as well. So it looks like I'll be hanging on to it for a while. That CGT sure is a killer. Thanks everyone for your help.

It's done really well and I'm quite happy with the growth, but the rent is quite low, and there are high costs (body corporate, and water rates and usage as the flat is not individually metered). So I'm just thinking how that money could be better placed than tied up in something with such a low...

How would I work out what the value was in 2003? Do I need to use an average for properties of that type in the area?

That's quite true - if you calculate it on what I originally paid for it, net yield is around 8% - quite good but everyone says you have to consider opportunity cost, and it is supposedly worth nearly $300K but certainly not making my day-to-day life easier. I did borrow against it and bought...

It's always been my own philosophy to never sell, too, but it's hard to reconcile the fact that I'm now getting about a 1% return after expenses on the current value of this place. I could sell up and net about $250K after paying off the small loan still on it, and put that in the bank at 6% or...

I'm thinking of selling my first IP because it's increased in value enormously and the rental return is absolutely rubbish at the moment. Just looking at capital gains tax, and it seems a bit complex. I originally bought the flat to live in in 1998, lived there for 5 years, bought a house...