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From: Mike .
I/P by mistake...what to do now?
From: Brenton
Date: 5/8/00
Time: 3:53:20 PM
Ok heres one for the books. My wife encourages me to look at a more care free lifestyle here in Adl. We currently own free hold a property worth $320,000 give or take a little and I am 35 and she is 32(no children). The property we are in is 1/2 an acre with an indoor swimming pool, outdoor tennis court, 38 sq two storey home etc etc. A little to look after but not impossible.
We go and buy a 10 year old townhouse in North Adl which is a very convenient inner metro location( just off Melbourne St) only walking distance from the city and loads of shops and restaurants in North Adl.
After weeks of deliberation after settlement, "We" both decide to stay in the property we already have and not make the big move. The North Adelaide property rented fairly easily for $280/week but of course it is costing me in excess of $450 a week after all fees. I have the tenants on a periodical and there intention is to stay until the end of the year.
Now, the big question, with GST and the end of the world predicted shortly after, what do we do? Are prices in properties likely to suffer from the crossed armed mentality of I am not spending money any more because of GST or is this a short term attitude adjustment. And with that, the market may not see any gains for some time as we have bought at the peak in "some" peoples opinion? Do we sell immediately and recoup as much as possible? I estimate a definite $20K loss regardless as stamp duty was $12K of the $292K borrowed.
I am not scared by this as we have other business interests we hopefully can work capital losses against capital gains. I am discouraged by our lack of insight as the outcome and repercussions of our decision to not reside in the North Adelaide property. Do we sink more dollars into it over the next 2-3 years and try and get the yield up a bit? Or just sell it off and look for more positively geared property which is very possible in Adelaide?
Anyones suggestions and previous experience would be much appreciated. Regards Brenton [email protected] Ph 08 82852400 fax 08 82852411
I/P by mistake...what to do now?
From: Brenton
Date: 5/8/00
Time: 3:53:20 PM
Ok heres one for the books. My wife encourages me to look at a more care free lifestyle here in Adl. We currently own free hold a property worth $320,000 give or take a little and I am 35 and she is 32(no children). The property we are in is 1/2 an acre with an indoor swimming pool, outdoor tennis court, 38 sq two storey home etc etc. A little to look after but not impossible.
We go and buy a 10 year old townhouse in North Adl which is a very convenient inner metro location( just off Melbourne St) only walking distance from the city and loads of shops and restaurants in North Adl.
After weeks of deliberation after settlement, "We" both decide to stay in the property we already have and not make the big move. The North Adelaide property rented fairly easily for $280/week but of course it is costing me in excess of $450 a week after all fees. I have the tenants on a periodical and there intention is to stay until the end of the year.
Now, the big question, with GST and the end of the world predicted shortly after, what do we do? Are prices in properties likely to suffer from the crossed armed mentality of I am not spending money any more because of GST or is this a short term attitude adjustment. And with that, the market may not see any gains for some time as we have bought at the peak in "some" peoples opinion? Do we sell immediately and recoup as much as possible? I estimate a definite $20K loss regardless as stamp duty was $12K of the $292K borrowed.
I am not scared by this as we have other business interests we hopefully can work capital losses against capital gains. I am discouraged by our lack of insight as the outcome and repercussions of our decision to not reside in the North Adelaide property. Do we sink more dollars into it over the next 2-3 years and try and get the yield up a bit? Or just sell it off and look for more positively geared property which is very possible in Adelaide?
Anyones suggestions and previous experience would be much appreciated. Regards Brenton [email protected] Ph 08 82852400 fax 08 82852411
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