Cannot justify selling

[Ausprop]

as a consequence of the market doing ok of late I run through each of the properties and think ok I could sell this or maybe that, but keep coming to the conclusion, why bother selling? they aren't costing anything, selling only triggers taxes and agents fees and hassle, the outlook is looking pretty good.

so is anyone justifying hitting the disposal button at the moment? Even small scale developers must be tempted to just hold at the moment?

 

[Terry_w]

I can think of 4 possibe reasons

1. Funds released could be used to pay down non deductible debt and then reborrow to invest again.

2. Restructure in a more tax effective and asset protection efficient way

3. To invest funds elsewhere with prospect sof a better return.

4. to crystalise a capital gain during a period of low income.

 

[Dazz]

why bother selling? they aren't costing anything, selling only triggers taxes and agents fees and hassle, the outlook is looking pretty good.

Same ausprop.

The CGT would be a killer.

They now just sit. The ressy stuff doesn't make any money, even the stuff bought 15 or 20 years ago doesn't generate enough rent to even make a blip on the income radar.....they really were just stepping stones 10 years ago to something much better.

Selling them is a huge waste of tax. Holding them is neither here nor there. Boxed in with nowhere to go. I've found this is the long term position of investing in houses.

No-one ever told me this is how it would be 20 years ago.

 

[wategos]

Selling a property last year and buying shares instead has improved my cash flow 20K. CG tax is over 50K but it's worth it to me. Also wanted to reduce risk in what I see as an overpriced market.

 

[skater]

I can think of 4 possibe reasons

1. Funds released could be used to pay down non deductible debt and then reborrow to invest again.

2. Restructure in a more tax effective and asset protection efficient way

3. To invest funds elsewhere with prospect sof a better return.

4. to crystalise a capital gain during a period of low income.

We are looking at offloading a couple. I suppose they kind of fit into No 3, but not entirely.

Firstly, I hate paperwork, so getting rid of some reduces that. Secondly getting rid of some (the dogs) & pouring the gain into others (the keepers) will give a better return. This will enable Hubby to retire.

 

[westminster]

as a consequence of the market doing ok of late I run through each of the properties and think ok I could sell this or maybe that, but keep coming to the conclusion, why bother selling? they aren't costing anything, selling only triggers taxes and agents fees and hassle, the outlook is looking pretty good.

so is anyone justifying hitting the disposal button at the moment? Even small scale developers must be tempted to just hold at the moment?

Another possible reason is sell is safeguard against downturn in the market.

How would you feel if next year the market loses 10% and those properties are no longer so rosy, or the interest rate goes up to 8%.

But yes I do think holding is easier as long as you factor in opportunity cost - if you sold could you do something better?

It's risk management, growth management and structure management.

 

[Scott No Mates]

[*]Pay down debt

[*]Use cg losses against cg

[*]restructuring and get into other investments

 

[MTR]

as a consequence of the market doing ok of late I run through each of the properties and think ok I could sell this or maybe that, but keep coming to the conclusion, why bother selling? they aren't costing anything, selling only triggers taxes and agents fees and hassle, the outlook is looking pretty good.

so is anyone justifying hitting the disposal button at the moment? Even small scale developers must be tempted to just hold at the moment?

Hi John
I will be offloading my 3 developments this year and profits will be used for other higher yielding asset classes, in turn reduce debt, increase cash flow and reduce headaches of resi.
Future developments/next year will be dependent on what is happening in the market.

I think you answered your own question in your particular scenario, may as well just hold.

cheers
MTR