Hey all,
I am a newbi to the forum and have had some excellent assistance so far with my own queries. Now I have one for my mum and dad!!!
Here are the Stats:
Both aged 60, retired last year and are currently travelling Australia!
Purchased a property in Ringwood 12 years ago
- 2 bedroom
- 1 bathroom
- Study
- Reasonable front yard
- Located walking distance to two train stations, shopping centre, in between Wantirna Rd, Whitehorse Road and therefore very close to EastLink
Currently generating $340 per week ($17,680 pa)
Current valuation $380k - $420k
The tenants have just announced they are moving out of the property as they have split up. Hence, I have received a phone call from mum to see what they should do!
I am no expert in property and have a phone appointment with the agent tomorrow to discuss the local market in relation to the property. They have already experienced great capital growth and I am nervous that the market is starting to flat line with the potential to fall. As they have retired any tax deductibility has gone out the window and they are actually paying tax on their income as opposed to their tax free income stream they receive from their super fund. The income based on the lower value fo the property is only 4.6% - reduced further by inflation. There is no avoiding the CGT just ways to minimise it - which will be diminished if they wait and sell after June 30 2012.
I say sell, but what does the current market feel like to you all???
I am a newbi to the forum and have had some excellent assistance so far with my own queries. Now I have one for my mum and dad!!!
Here are the Stats:
Both aged 60, retired last year and are currently travelling Australia!
Purchased a property in Ringwood 12 years ago
- 2 bedroom
- 1 bathroom
- Study
- Reasonable front yard
- Located walking distance to two train stations, shopping centre, in between Wantirna Rd, Whitehorse Road and therefore very close to EastLink
Currently generating $340 per week ($17,680 pa)
Current valuation $380k - $420k
The tenants have just announced they are moving out of the property as they have split up. Hence, I have received a phone call from mum to see what they should do!
I am no expert in property and have a phone appointment with the agent tomorrow to discuss the local market in relation to the property. They have already experienced great capital growth and I am nervous that the market is starting to flat line with the potential to fall. As they have retired any tax deductibility has gone out the window and they are actually paying tax on their income as opposed to their tax free income stream they receive from their super fund. The income based on the lower value fo the property is only 4.6% - reduced further by inflation. There is no avoiding the CGT just ways to minimise it - which will be diminished if they wait and sell after June 30 2012.
I say sell, but what does the current market feel like to you all???