澳洲Australia property Should I sell my IP in FNQ | Sydney


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


I own a house in Cairns FNQ which I paid 280K for ~6 years ago. It is now worth around $380K It is tennanted at $380 a week. I owe $220K on this property. I am considering selling which will attract capital gains tax and mortgage break costs (I fixed at 8% for 5 years 2 years ago fearing a come back of the post boom IR of the 80's) I own two apartments in Adelaide that are worth around $250K each and owe around $185K each on these. I live in one and rent the other out at $300 a week. I plan to sell the house in Cairns and use the equity to pay off the apartment I live in to allow me to work less for a couple of years while studying. The apartment I live in was an investment property also returning $300 a week until I moved into it a year ago. I did live in the Cairns property for 18 months (will this give me any protection against capital gains tax?) Would welcome any advice.  

评论
JASA said: ↑
I own a house in Cairns FNQ which I paid 280K for ~6 years ago. It is now worth around $380K It is tennanted at $380 a week. I owe $220K on this property. I am considering selling which will attract capital gains tax and mortgage break costs (I fixed at 8% for 5 years 2 years ago fearing a come back of the post boom IR of the 80's) I own two apartments in Adelaide that are worth around $250K each and owe around $185K each on these. I live in one and rent the other out at $300 a week. I plan to sell the house in Cairns and use the equity to pay off the apartment I live in to allow me to work less for a couple of years while studying. The apartment I live in was an investment property also returning $300 a week until I moved into it a year ago. I did live in the Cairns property for 18 months (will this give me any protection against capital gains tax?) Would welcome any advice.Click to expand...
I'd say, if you could really get $380K for it, sell. A 5% gross yield is not that great to hold as an investment in Cairns so I think you may struggle. You'll find the smart investor money is looking for a minimum of 6% gross yield (and even thats marginal).
The markets not going anywhere in Cairns for a while and as its just costing you money to hold, why would you?  

评论
Thanks for your reply, I just worked out how to reply on the thread. Very new to this.  

评论
whatever123 said: ↑
and as its just costing you money to hold, why would you?Click to expand...
pretty controversial for this fourm! most members I think would say hold onto it, think of the bigger picture, don't slaughter the pig, load up, refi and buy again  

评论
Ausprop said: ↑
pretty controversial for this fourm! most members I think would say hold onto it, think of the bigger picture, don't slaughter the pig, load up, refi and buy againClick to expand...
Even if JASA could get strong capital growth rate of 5% per annum, holding would be a break even proposition at best.

There does not seem to be any benefit in holding, unless you expect capital growth beyond 5% per annum. Not likely with low rental yields and higher interest rates in my opinion.

Lock in gains and run should be a good idea.  

评论
I don't think the Chinese are buying Cairns. :D 33% appreciation in 6 yrs is no big deal so I can see no reason to hold.  

评论
what about capital gains?

Thanks for your comments everyone. Does anyone know how I would go with capital gains tax on the Cairns property. I let it out for the majority of time I owned it but it was my PPOR for 18 months. I am living in another of my IP's at present so wondering if could still claim it as my PPOR when I sell?  

评论
No the Japanese were buying there for a while though. There were lots of empty houses in gated communities owned by Japanese. I don't know if it is still that way?  

评论
JASA said: ↑
Thanks for your comments everyone. Does anyone know how I would go with capital gains tax on the Cairns property. I let it out for the majority of time I owned it but it was my PPOR for 18 months. I am living in another of my IP's at present so wondering if could still claim it as my PPOR when I sell?Click to expand...
You can still claim an IP as PPOR when you sell and get the CGT exemption, so long as you do not claim the exemption for another property at the same time. The other possible way to treat it is to apportion the capital gains based on the period of time it was PPOR (tax free) and the period as an IP. You need to work out which way will work best based on your property portfolio. For example, it will be worthwhile claiming the exemption on the property that will give you the highest capital gain for that period (whether the Cairns property or the Adelaide unit).  

评论
different towns/citys grow at different paces, you have already paid the stamp, and when you sell this will have agents fees too,add these =$, what are your break fees.add this up too!

are you getting the true rent for this??? and is it covering your loans, well its not totally a dog.. i would leave it alone ie set and forget, it might become a big surprise later on, and welcome to SS ;)  

评论
Thanks

Your reply has been very helpful,
Thanks,  

评论
JASA

Have you talked to the bank about what it would cost to exit from your fixed rates?

If you sell you will be up for substantial penalties to get out of the loan.....

Your 90k profit selling costs may look more like 70k after paying early exit penalties.....

JASA said: ↑
I own a house in Cairns FNQ which I paid 280K for ~6 years ago. It is now worth around $380K It is tennanted at $380 a week. I owe $220K on this property. I am considering selling which will attract capital gains tax and mortgage break costs (I fixed at 8% for 5 years 2 years ago fearing a come back of the post boom IR of the 80's) I own two apartments in Adelaide that are worth around $250K each and owe around $185K each on these. I live in one and rent the other out at $300 a week. I plan to sell the house in Cairns and use the equity to pay off the apartment I live in to allow me to work less for a couple of years while studying. The apartment I live in was an investment property also returning $300 a week until I moved into it a year ago. I did live in the Cairns property for 18 months (will this give me any protection against capital gains tax?) Would welcome any advice.Click to expand...
 

评论
Just read this thread as I just got back from a trip to Cairns, I love it up there!! My opinion would be to hold onto it if you can, however, I notice you want to be able to study and so can see why you want to generate some cash. I can appreciate this, as I put my investing on hold for a few years to do extra study/training in order to change my life. So if you see the study as an investment in it's own whether it be lifestyle change or increase in future earnings I say go for it, especially if you are still young. There is more to life than the number of houses you own.

With regards to Cairns, can I ask where abouts you lived and what the nice suburbs (i.e. safe and no dodgy areas) are close to the city? I have been there twice now (preferred the weather in January was it was hotter, was borderline too cool for me in May but still lovely!!) and reckon I could see myself retiring there, or at least live there part time when my finances allow me to. :D  

评论
Biggles, was it really too cool in May? I was there one August and it was so nice that I've booked a week off up there this July to get some SUN. I hope I won't be disappointed  

评论
RedCat said: ↑
Biggles, was it really too cool in May? I was there one August and it was so nice that I've booked a week off up there this July to get some SUN. I hope I won't be disappointedClick to expand...
Cairns can be wet in July. If you really want Sun you go to Townsville. Sometimes it is so wet in Cairns the nomads and backpackers come back here and are pleasantly surprised at what there is to do.

Lately it has been 28-29 deg right across the north and I'm sitting here in a light T shirt and shorts @ 4:50. If you want to see the north at it's best come up just after the wet season, late April, May and it really is "Beautiful one day, perfect the next".  

评论
RedCat said: ↑
Biggles, was it really too cool in May? I was there one August and it was so nice that I've booked a week off up there this July to get some SUN. I hope I won't be disappointedClick to expand...
Well everyone else was in shorts and t-shirt and my mother considered the weather perfect. I had light dresses on but wore a cardigan half the time, but mind you, I was the only one with long sleeves. I REALLY feel the cold more than anyone I know, so prefer the hot weather with high humidity. I'm a bit odd, so you'll probably find the weather perfect. :) I have been there now in January and May, and during both times, we only had a couple of showers during the January time, and no rain at all in May.

As Sunfish said, Townsville had perfect blue skies. We drove down there one day and noticed the partly cloudy sky disappear into perfect blue skies, but Townsville doesn't compare to Cairns! Cairns is FAR nicer. :p  

评论
Biggles said: ↑
Well everyone else was in shorts and t-shirt and my mother considered the weather perfect. I had light dresses on but wore a cardigan half the time, but mind you, I was the only one with long sleeves. I REALLY feel the cold more than anyone I know, so prefer the hot weather with high humidity. I'm a bit odd, so you'll probably find the weather perfect. :) I have been there now in January and May, and during both times, we only had a couple of showers during the January time, and no rain at all in May.

As Sunfish said, Townsville had perfect blue skies. We drove down there one day and noticed the partly cloudy sky disappear into perfect blue skies, but Townsville doesn't compare to Cairns! Cairns is FAR nicer. :pClick to expand...
cool, i have a few properties in cairns but never been there. might have to make a trip to cairns :D  

评论
eternit said: ↑
cool, i have a few properties in cairns but never been there. might have to make a trip to cairns :DClick to expand...
Yes definately. :)
I haven't seen all of Australia yet, but have seen a fair bit, and the Cairns area is by far my favorite! I'd consider buying an investment property up there, as I could see myself perhaps living there at least part-time one day! :D  

评论
Hi

Just to clarify JASA owes $220k wouldn't the yield be calculated on what Jasa owes? Makes it nearly 9% yield?

For a Investor it wouldn't be as attractive at $380k with $380pw rent.


JASA
I own a house in Cairns FNQ which I paid 280K for ~6 years ago. It is now worth around $380K It is tennanted at $380 a week. I owe $220K on this property.Click to expand...
WHATEVER123
I'd say, if you could really get $380K for it, sell. A 5% gross yield is not that great to hold as an investment in Cairns so I think you may struggle.Click to expand...
SG  

评论
stargazer said: ↑
Hi

Just to clarify JASA owes $220k wouldn't the yield be calculated on what Jasa owes? Makes it nearly 9% yield?

SGClick to expand...
I reckon the yield should be calculated against the dollar value of your asset.

I see a trend developing
http://www.somersoft.com/forums/showthread.php?p=673547#post673547
so it might be smart to act early.  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...