Purchased unit in Sunshine Coast 3 years ago For $355000 .I/O @5.69 %.Last financial year Grossed $24,000 with $15300 in costs< finally starting to show some capital gain. Quoted up to $420,000 value. Not sure to cash in or sit and wait. Beautiful unit, 3 br , superb ocean views, cannot be built out. Any thoughts. Current accountant says sell!
Managed unit
- Thread starter Live Rails 53
- Start date
I' ve got 2 other I/Ps, accountant says I'm over committed.
Live Rails,
You may or may not be over committed. I could not tell that.
But I'd talk to an accountant who knows property before I'd believe him.
Your accountant may not be sympathetic to investment property. I've seen accountants who suggest that their clients by managed funds in preference to buying property.
Best of all worlds- go to Dale and talk (http://www.gatherumgoss.com/). Pay him his fee- and discuss things someone who knows property. He should be able to tell you whether you are really overcommitted or not.
(Sorry Dale, I hope i'm not putting you on the spot here...)
I don't use Dale myself (yet). There's a few reasons beyond IPs. But I've been very impressed, and very impressed by his Tax Battles manual. And his knowledge, as shown in this forum, is superb.
You may or may not be over committed. I could not tell that.
But I'd talk to an accountant who knows property before I'd believe him.
Your accountant may not be sympathetic to investment property. I've seen accountants who suggest that their clients by managed funds in preference to buying property.
Best of all worlds- go to Dale and talk (http://www.gatherumgoss.com/). Pay him his fee- and discuss things someone who knows property. He should be able to tell you whether you are really overcommitted or not.
(Sorry Dale, I hope i'm not putting you on the spot here...)
I don't use Dale myself (yet). There's a few reasons beyond IPs. But I've been very impressed, and very impressed by his Tax Battles manual. And his knowledge, as shown in this forum, is superb.
Hi
I'm surprised to hear of the advice that you have been given, but, without the full picture it is hard to know why . . . If I may ask:
Why did you invest in that unit in the first place?
What goal are your investments designed to achieve?
Will you be able to use the funds from the sale elsewhere that will help you achieve your goals quicker or more efficiently?
I am a firm believer that you never, ever sell a property investment because when you do, you pay the real estate agent a commission and lose money; you pay the bank any loan payout fee and lose money; you pay the solicitor money and lose again; and, you pay your accountant a little more to calculate the CGt involved in the sale . . .
The accountant doesn't want you to place the sale proceeds into managed funds, does he? If so, guess who benefits immeditaely from that decision??? Sorry, I am cyncial old bastard.
In doing so, you will have lost a decent part of the wealth that you have gained.
Good luck, either way
Dale
I'm surprised to hear of the advice that you have been given, but, without the full picture it is hard to know why . . . If I may ask:
Why did you invest in that unit in the first place?
What goal are your investments designed to achieve?
Will you be able to use the funds from the sale elsewhere that will help you achieve your goals quicker or more efficiently?
I am a firm believer that you never, ever sell a property investment because when you do, you pay the real estate agent a commission and lose money; you pay the bank any loan payout fee and lose money; you pay the solicitor money and lose again; and, you pay your accountant a little more to calculate the CGt involved in the sale . . .
The accountant doesn't want you to place the sale proceeds into managed funds, does he? If so, guess who benefits immeditaely from that decision??? Sorry, I am cyncial old bastard.
In doing so, you will have lost a decent part of the wealth that you have gained.
Good luck, either way
Dale
Bob disagrees with Dale (a first!), but only because Dale didn't put in his usual 'personal circumstances' disclaimer. 
There can be good reasons for selling. We've made 100% cap gain on a property over 2 years. We could refinance but we'd end up negatively geared (which we don't like). The cashflow, though positive, is small and the ownership is in the wrong structure.
So we'll sell the property, pay the tax, pay off our non-deductible mortgage and immediately reborrow the money to buy something else, preferably through a trust.
The fact is also that we believe the market has peaked (here) and our tenants are interested in buying the house.
But what I'm sure both Dale and I agree on is...DO THE NUMBERS!
Bob
There can be good reasons for selling. We've made 100% cap gain on a property over 2 years. We could refinance but we'd end up negatively geared (which we don't like). The cashflow, though positive, is small and the ownership is in the wrong structure.
So we'll sell the property, pay the tax, pay off our non-deductible mortgage and immediately reborrow the money to buy something else, preferably through a trust.
The fact is also that we believe the market has peaked (here) and our tenants are interested in buying the house.
But what I'm sure both Dale and I agree on is...DO THE NUMBERS!
Bob
Originally posted by Bobq
Bob disagrees with Dale (a first!), but only because Dale didn't put in his usual 'personal circumstances' disclaimer.
Bob
Hi Bob!
People have died for less, you know!!!!!!!!!!!!!!!!
Seriously, I do agree with you and I think that you raised an excellent point - there is no such thing as one size fits all.
Thank you for correcting me.
Have fun
Dale
Peter SPann, who is a great buy and hold advocate, was saying in the Property Update seminar in Sydney last night that there are two occasions when he would sell:
1. When he's made a mistake
2. When he really needs the money (he says that he's had to put $10 mill into his business, and is down from 100+ Ips to a mere 60- but is buying again now.
1. When he's made a mistake
2. When he really needs the money (he says that he's had to put $10 mill into his business, and is down from 100+ Ips to a mere 60- but is buying again now.
