Sell overseas unit and bring money here or remain invested?

I have a unit in India, no mortgage on it and currently valued at round 100,000 AUD. It is currently tenanted and getting around 150 aud per month (I know, it is pretty low, that's why the question). The max CG on the property has almost reached and here on it looks pretty flat.

My PPOR in Sydney has 432K mortgage remaining and I have an 100% offset account.

I have two options:
- Keep the unit leased and get the rental as the income.
- Sell it, get the money here put in the offset account.

Which option is more financial sound? Please ask more questions if I have missed some important details.
 
Don't know whether the $150 pm is clear or gross but if it is gross you are getting all of 1.8% return before expenses. If this is the case then I would definitely liquidate it.

If it's clear then you are getting the same 1.8% but at least you can compare it to a 6+% return( tax free) that you would get simply by parking it in your offset account.

You say the CG looks to be flat, but why do you say this and also how much gain is there in the $100k and what are the tax consequences of selling it.

Cheers
 
It is the rent I get. Strata (called Maintenance there) is 25 aud per month. So net return is 125 aud then.
I said CG is flat as the price since I bought the unit in 2004 tripled itself and now there are many new apartments sold for almost the same price. I also checked with some friends and REAs other there.

Good you reminded of the Tax consequences. I totally forgot about it. It come come up to 13K AUD:(
 
Pretty much what Aaron said, where do you see more growth, India or Sydney?

The other thing to keep in mind is FX. Is the apartment price pegged to USD or the rupee?
 
I see more capital growth in India. However, I fear the way the prices have gone up. My property is worth 6 times more than what I bought for 8 years ago. However, there are a lot of developments happening and the rentals are pretty low.

Sydney on the other had has comparatively slower CG, but steady (and high) rental. Managing property and maintenance are easier. The FX is a big factor. The amount of money I would be getting now by selling the apartment will be the same as what I would have got by selling 3 years ago. The reason being 1 AUD was 30 INR then and now the rates 1 AUD = 57 INR.

I did not understand your last question about the apartment price pegged to USD or Rupee?

Also, do you guys have any suggestions on ways to transfer money from India to Australia?
 
I see more capital growth in India. However, I fear the way the prices have gone up. My property is worth 6 times more than what I bought for 8 years ago. However, there are a lot of developments happening and the rentals are pretty low.

Sydney on the other had has comparatively slower CG, but steady (and high) rental. Managing property and maintenance are easier. The FX is a big factor. The amount of money I would be getting now by selling the apartment will be the same as what I would have got by selling 3 years ago. The reason being 1 AUD was 30 INR then and now the rates 1 AUD = 57 INR.

I did not understand your last question about the apartment price pegged to USD or Rupee?

Also, do you guys have any suggestions on ways to transfer money from India to Australia?

would depend whereabouts in india your place is. certain cities command a very high price and demand. like mumbai and gujarat.
 
I did not understand your last question about the apartment price pegged to USD or Rupee?

Also, do you guys have any suggestions on ways to transfer money from India to Australia?

My understanding was that the Rupee has devalued 20% over the past year compared to the USD. Therefore if your apartment price is in Rupee then you have to take into account depreciation of currency as well. However, if it's in USD then the risk would be less as the AUD/USD rate is already at an alltime high.

As an example, in Vietnam the housing prices are often listed in USD (then converted back into VND).
 
Melbournian, My place is borderline Mumbai (Thane, to be precise, if you know the place)

Starter: My apartment price is in Rupee. I bought it when I was living in India 8 years ago.
 
Check with your accountant about the rules around cost base for when you become a resident of Australia i.e. the market value at the time, which will be taken into account when calculating the capital gain.

I think if you have no intentions of going back and living there, it would be good to sell it and park the funds in your offset account, as others have already mentioned.

Especially as you do not foresee any further growth, its better to sell rather than have it competing with newer properties. Additionally, its a demand and supply thing, which will impact the price in future.
 
If 35 is young, then yes I am :)
I would not have even thought of selling, if the returns were good and I did not have investment here in Sydney.
But then, you said what my Dad and Dad-in-law said, when I told them about my plans to sell.
Never ignore wisemen :)
 
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