Selling

[WebBoard]

From: Rolly Taddeo


My tenets have ask me would i to sell my IP to them?
I've had an Appraisal done on the 3 Bedroom property and the Real Estate Agent said $265000.
I built the property back in 1989 for $80,000 and has been rented out ever since.
It has a mortgage against a 4 bedroom home for $240000.
1. can i keep this money and reinvest in other properties without the bank knowing i sold it.
2. if i buy any more property i am subjected to land tax. Would i be better off putting the money into managed fund which would pull around 7% per year
3. what losses are involved when selling property E.g ,CGT, solicitors,Re agent's ETC
4.what would be my start up cost if i were to purchase 2 IPsPs,ass with the excess cash in the bank.

 

[paulzag]

Reply: 1
From: Paul Zagoridis


Hi Rolly

You've done quite well from the property so far. Why would you sell unless you think you can make more money elsewhere.

>1. can i keep this money and
>reinvest in other properties
>without the bank knowing i
>sold it.

If the bank has a mortgage and holds the title deed to the property, then they'll want their $240K before they give the purchaser the deeds.

>2. if i buy any more property
>i am subjected to land tax.
>Would i be better off putting
>the money into managed fund
>which would pull around 7% per
>year

You've done better than 7% so far. Do you expect to do worse?

>3. what losses are involved
>when selling property E.g
>,CGT, solicitors,Re agent's

You've actually got a gain not a loss, plus some expenses to sell. Talk to your accountant on the tax issues. A conveyancer or solicitor will have to draw up the sale contract. Agents commissions in NSW are negotiable (between 1.2% and 2.5%). Don't just og for the cheapest. If you sell to your tenants there is no agents commission.

>4.what would be my start up
>cost if i were to purchase 2
>IPs,ass with the excess cash
>in the bank.

Assuming you don't have other equity, figure between 5-10% deposit + loan application fees, stamp duty and conveyancing. Download the demo of PIA from the Somersoft site - that gives you good general figures.

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