The right time to restructure

Dear all,

Long ago, when I started property investing I hadn't heard of trusts, so I put some properties 99% in my name and 1% in my wife's for the tax deductions. However, I was also buying cashflow positive properties.

Don't laugh, we all have to learn.

However, I have taken a job in the Solomon Islands which is essentially tax free and I will never have a better chance to sell a property with less effective CGT payable.

I own a 2br flat in Kingston, furnished and rented at $450 per week. It's all non lease rentals to diplomats, the Brumbies and other temporary Canberra residents. The Brumbies, BTW, are awesome tenants. One breakage in 5 years and the ARL paid for it without a quibble.

The management is 12.5% because they keep the tenants coming and handle everything without a problem. I would recommend that if you were not planning to live there, that you keep the agents who are executive rental specialists.

Asking price is $350,000, which is a yield of around 6.7%. Given that you can get a residential loan for this one, I suspect that there are few better deals on the market.

I will try and keep this updated, but I shift countries in 2 day's time and I'm particularly unsure as to how soon I can get internet in the Solomons.

I'm not in a hurry to sell, so if you are even vaguely interested, drop a reply or a PM here and I'll check in from time to time.

Regards, and successful investing,

Quiggles
 
Thanks.

The unit is rarely vacant, and not for long (usually less than a week). The REA usually has contracts organised back to back to minimise downtime. You will not get a long term tenant at these rates, however. Longest vacancy was for a month, but we had a sewage spill straight after a washing machine failure and had to have carpet repairs etc.

If you calculate on a 4% vacancy rate, you'd be being conservative.
 
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