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From: Mike .
Advice please!!
From: Donna S, Melbourne, Vic.
Date: 01 Oct 2000
Time: 11:06:01
Hi! I have been looking with great interest through this wonderful website, and have also recently stumbled across the Rich Dad website, which is also very enlightening.
I wonder if someone may help me through some difficult decision making regarding an IP (the one and only that i have). All of the experts i have consulted with - my Tax accountant, and a property investment consultancy tell me to off load this house and channel the money into something more expensive.
The house was purchased 10 yrs ago in a newly established estate (Hoppers Crossing). It was fairly cheap at just over $100K. Now, 10 years later it is valued (by local council) at a whopping big $122K!! I did not purchase the property as an investment - it was to be the marital home, which is now ex-marital, and up until recently, tenanted with very troublesome tenants. There have been periods of non-payment of rent, damage, and general neglect. I am in process of now cleaning up (they were evicted after very convoluted Tribunal hearings, and unfortunate mishandling by agent).
All said, from my readings, it seems as though I may be best to keep the property and have another go, with hopefully better tenants. The rental return is quite good, when you get it ($800 pcm). However, my concerns are over the lack of capital growth, and the ongoing expenses of maintaining it. I owe $80K on the mortgage, which i hope to pay soon (next few yrs). The plan (may be crazy) was to pay it off quick, live there, and then invest in more properties elsewhere. I am currently renting on the cheap, and only own the one mortgage.
Does anyone have some good advice for me? Am I heading on the path to ruin? Should I heed the advice of my accountant and sell up now and invest in something more expensive, closer to the city, etc etc etc??? I would really appreciate any thoughts you more experienced property investors may be able to offer.
Thanks heaps, Donna.
Advice please!!
From: Donna S, Melbourne, Vic.
Date: 01 Oct 2000
Time: 11:06:01
Hi! I have been looking with great interest through this wonderful website, and have also recently stumbled across the Rich Dad website, which is also very enlightening.
I wonder if someone may help me through some difficult decision making regarding an IP (the one and only that i have). All of the experts i have consulted with - my Tax accountant, and a property investment consultancy tell me to off load this house and channel the money into something more expensive.
The house was purchased 10 yrs ago in a newly established estate (Hoppers Crossing). It was fairly cheap at just over $100K. Now, 10 years later it is valued (by local council) at a whopping big $122K!! I did not purchase the property as an investment - it was to be the marital home, which is now ex-marital, and up until recently, tenanted with very troublesome tenants. There have been periods of non-payment of rent, damage, and general neglect. I am in process of now cleaning up (they were evicted after very convoluted Tribunal hearings, and unfortunate mishandling by agent).
All said, from my readings, it seems as though I may be best to keep the property and have another go, with hopefully better tenants. The rental return is quite good, when you get it ($800 pcm). However, my concerns are over the lack of capital growth, and the ongoing expenses of maintaining it. I owe $80K on the mortgage, which i hope to pay soon (next few yrs). The plan (may be crazy) was to pay it off quick, live there, and then invest in more properties elsewhere. I am currently renting on the cheap, and only own the one mortgage.
Does anyone have some good advice for me? Am I heading on the path to ruin? Should I heed the advice of my accountant and sell up now and invest in something more expensive, closer to the city, etc etc etc??? I would really appreciate any thoughts you more experienced property investors may be able to offer.
Thanks heaps, Donna.
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