renovating to sell

[investwest]

Hi, we have an I.p in Altona Meadows, first occupied june 85 it only has two years deprecation left on it. We bought it in 2005 have done well out of it.
Our dilema is are we better off holding it in two years, or doing it up to sell and buying something else. With the proceeds of the sale we would be able to pay out the mortgage on our own place of residence. It's funny we were scared to buy an investment property, now scared to sell. Would love to hear peoples opinions, whether they hold, or do up and sell and buy again, especially after doubling value, thanks.

 

[Propertunity]

Our dilema is are we better off holding it in two years, or doing it up to sell and buying something else. With the proceeds of the sale we would be able to pay out the mortgage on our own place of residence. It's funny we were scared to buy an investment property, now scared to sell. Would love to hear peoples opinions, whether they hold, or do up and sell and buy again, especially after doubling value, thanks.

So, in your words you have "done well" out of it.
Now you want to know if it is a good idea to sell and buy something else so you can:
1. Pay CGT
2. Pay REAs commissions & legals on sale
3. Pay Stamp Duty & legals on the next buy
4. Hope that the next buy will do as well as the one you have (which has been a known quantity to date)
5. Trust that the lenders will give you another mortgage in a tougher credit environment with as good terms as you (may) have now

Why wouldn't you just avoid all that, and hold until it doubles again and just refi some cash out of it as you want?

 

[investwest]

the dream

The dream was to buy and then do up and sell when they have doubled in price.
With this one, once sold we will be able to pay out our own home loan, which obviously we cant negative gear on, with that paid out we will be saving $16,000 a year in interest. The property we want to sell, rental returns not that great, when we first bought they were pretty good. Now the best we could do would be $280 per week, and that is on a house that would now be worth
$400,000, pretty bad I think. We dont have cash flow, or to be honest, not prepared to buy another property now and do it hard again, we want a bit of a life for our kids. I'm prepared to live on baked beans, my husband is'nt. The only way we will be able to buy again at the moment would be to sell something. I would then like to look for positive gearing properties, before you say there are none out there,they are a dime a dozen in Tassie, and country areas. The other idea is to buy a house in Laverton on a big corner block which later we could sub-divide. In regards to bank giving us credit, no problems, we are sitting pretty on the equity side of things, just a little asset rich, cash poor. We also have an Italian family background, and that means we are pretty good with our hands in regards to renovating, and have family members in the building industry. Capital gains, you are only paying on half so not too bad I think.

 

[Propertunity]

The dream was to buy and then do up and sell when they have doubled in price.

Follow your dream

I would then like to look for positive gearing properties, before you say there are none out there,they are a dime a dozen in Tassie, and country areas.

I would not say there are none out there We buy them all the time and you don't have to go out into the sticks or to Tassie to find them

All the best with the plans. Cheers, Alan

 

[wobbycarly]

investwest, despite the familiar adage "Never sell", sometimes you need to take (what would appear to some to be) 1 step backwards to take 2 steps forward.

Do what YOU want to do.

 

[The Y-man]

With this one, once sold we will be able to pay out our own home loan

Completely valid IMHO

The Y-man