Les
Reply: 1
From: Mike .
Re: Investment Property now paid for.
From: Les
Date: 12/11/99
Time: 4:00:48 PM
G'day Janice,
Congratulations to both you and the other half of "we"!!! That is a great achievement in anyone's language.
"Should we sell it and purchase others?" is your question. I say NO! and Yes! DON'T SELL - if possible, never, ever sell it - but use the Equity you have built up in it to purchase others. i.e. borrow against the value in this property to provide either the full cost of another rental, or as a deposit on maybe 2 more.
As this whole scenario depends on a number of factors (e.g. your current wage(s), your years to retirement, the value of this property, the current state of the rental market in your area, your attitudes to more rentals, etc.) it is not possible to be any more specific with my answer. But you could check out some of the other entries in this forum - a recent one "Increasing portfolio" could have some pointers that you could use too, and there have been several others over the months.
Check with your accountant too - he or she may be able to give you some very meaningful pointers before embarking on the next leg of your wealth-building - ask particularly about legal Tax minimisation (you are then able to buy properties with "Before Tax" dollars, rather than "After Tax" dollars).
If you haven't already, check out Jan's books (see the links from the Home page). Her first one (exact name eludes me) is almost a "bible" re Rental houses. That one can give you a host of ideas before/as you continue on your Wealth-building journey. "101 Stories" is a great read too, telling stories of other Investors (their triumphs and failures) - allows us to learn from their mistakes without making them ourselves.
Les
