Hi All,
I've been a bit of a long time lurker, just reading through the forums and trying to get my head around different strategies, risks and general advice. There seems to be some amiss, as everyone seems to be able to pay off their loans in 5 years, whereas it seems like I haven’t gotten anywhere with mine.
So I’ve gotten myself into a bad situation, where it seems like I’m just working, paying too much tax, wasting time, paying an insane amount of interest and not getting anywhere in life.
If I sell the house, I’m not sure whether spending $10K to level it out and fix everything up will be worth the sale price? I guess if I do whilst it’s an IP, it’s still deductible.
If I keep the house, it’s too cashflow negative and is impossible for us to save up for a second place. Ideally, my wife and I would like to live somewhere closer to the CBD, where I work, yet keep a rental property going somewhere.
Any thoughts on how to get out of this rut?
I've been a bit of a long time lurker, just reading through the forums and trying to get my head around different strategies, risks and general advice. There seems to be some amiss, as everyone seems to be able to pay off their loans in 5 years, whereas it seems like I haven’t gotten anywhere with mine.
So I’ve gotten myself into a bad situation, where it seems like I’m just working, paying too much tax, wasting time, paying an insane amount of interest and not getting anywhere in life.
- 3 bedroom weatherboard house in Sunnybank QLD, <100m from train station, purchased in 2008, just before the GFC hit, for $380K., and borrowed just as much! I lived in it for a year, got my FHOG and stamp duty concession, graduated uni, then moved to Perth, WA, where I shared a house.
- Since owning it, I’ve adding an additional toilet and wash basin.
- Currently rented out at 355/wk, 315K owing on loan, negatively geared on a 126K gross income.
- Currently set up offset account, paying interest only (I did this a year ago, before I got married, etc….very expensive exercise!!).
- Now, the tenants I’ve had in there for the last 4 years are now moving out, as they’re buying a house
- House is on concrete stumps – has moved a bit and need to have it levelled or re-stumped. Waiting for quotes, but I’m estimating maybe $10K for the job.
If I sell the house, I’m not sure whether spending $10K to level it out and fix everything up will be worth the sale price? I guess if I do whilst it’s an IP, it’s still deductible.
If I keep the house, it’s too cashflow negative and is impossible for us to save up for a second place. Ideally, my wife and I would like to live somewhere closer to the CBD, where I work, yet keep a rental property going somewhere.
Any thoughts on how to get out of this rut?