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
What do you think we should do? We have bought 2 apartments off the plan in Canberra with the procedes from selling our first toe in the water experience with investing in property (which was off the plan and rented for 2 years). Since we used all our profits for deposits we don't have any other cash right now to buy anything else. The bank does not recognise the money in the two off the plan apartments so we have no equity as such to use. We are due to pay stamp duty next month and though the market has flattened out we are considering on selling one of the aprtments simply to access cash to purchase something else we can rent and negative gear. The unit still have another 2 years until completion and though we will likely get capital growth, we are missing out on accessing equity to buy again and also no kickbacks from negative gearing.....Any thoughts? Should we just sit tight and hold, save another deposit over next 12 months or on sell a unit? We are relatively new in the investment property world and would appreciate any insight from more seasoned investors.
OK - where in Canberra? What sort of cost? Don't forget that the stamp duty (when buying in ACT) is tax deductible. If you paid the right price, and simply have to wait for the equity to come back with profit, maybe things aren't so bad. Canberra is holding up well (especially in the central suburbs).
It's too late now but perhaps next time you should consider using a deposit bond for an OTP purchase.
For a long-term bond you'll need to demonstrate that you have a certain amount of equity (this will vary depending on which company you use for the bond - it can be anywhere between 3 times to 5 times the bond amount). Also, your overall LVR will have to be 80% or less.
A long-term bond can be expensive - but for a two year settlement, i'd prefer to use a deposit bond than my own cash and/or equity......just in case something else pops up in the mean time.
Where are the units?
kirrils said: ↑
..and though the market has flattened out we are considering on selling one of the aprtments simply to access cash to purchase something else we can rent and negative gear.Click to expand...How much did you pay for them, and how much can you realistically sell them for now?
The units are in Woden , Phillip opposite Westfield Shopping Centre - great location! Bought in mid $350K, when asked the agent how much we would be able to onsell only 15-20k more. We've considered just sitting on them until completion in 2 more years time, but need equity to do something else in the meantime. Yes Canberra is a strong and consistent performer, we are happy with the the growth of previous property.Just would like to maximise gains in next 2 years.
kirrils said: ↑
when asked the agent how much we would be able to onsell only 15-20k more.Click to expand...wow, if you can get out of an OTP with a profit then grab it and run. my last OTP dropped me $70k - never again. until the next boom of course