Cant think cleary about investment strategy. Investors trauma.

You may want to throw that mind-set out the back door as any mathematician would think what you just said was ridiculous ..The onus from the start in on you -- and blame yourself..

 

Another way to look at it is;
The tenant is (was) subsidising your loan repayments/costs of owning the property.
Interest, land tax, rates etc are costs you still have to pay for whether the property is tenanted or not.

 

Seem a little contradictory, you complained you was paying rent to someone else and when someone is paying you rent you complained you subsidising them?

Investing has risk, losing money is real, life and jobs also face fair share of risk and set back just write it off and get on with it

 

If the property had doubled, op, would you still feel the same way?

 

i reckon theyd still be complaining about paying for the lifestyle of the tenant

 

In that case, financial information wont help unless the op works through the emotional baggage first.

 

With the property vacant, you will still be paying interest, water for lawns, land tax, council rates and maintenance costs. You've saved $50/week or so in PM fees, perhaps shaved $5/week off insurance costs and perhaps saved some repairs. You don't have to worry about potential issues with tenants. Offset against that, you have lost $500/week in rental income and have no local property manager to organise maintenance for you and keep an eye on the property to make sure nothing happens to it.

If you found being a landlord stressful and the property is returning good capital gains, perhaps that's worth it for you. Otherwise, perhaps you'd find some other form of investment a better fit.

 

@Ambrosius

Definitely worth talking to a financial planner well versed in property, the Perth IP seems like a millstone around your neck at present, Perth property prices may still be a slow recovery going forward

Sometimes it's worthwhile to do a Marie Kondo and declutter/simplify when all is looking hopeless

The GC options on the back of all the other issues don't seem to be a prudent move (to me), but hey, that's what a chat with a great FP will be for, taking the personal aspect out of the equation

 

This is why I was having a whinge at the property. After 9 years of slamming the mortgage down and also renting it out, the property prices have gone nowhere and I am behind. But I realise that the house is excellent from a land value perspective but old house.

PERTH suffers from multiple continuing state governments unable to capitalise on the fact that they own all the resources but give them away for peanuts and have created a debt mountain that’s insurmountable.
Perth should be the most successful Australian city, it could easily be a Dubai or a San Francisco. Many of my friends back in Perth, who tell me to never sell that property, because it’s location is great, say that they think Perth has the best future.

 

Your tenant(s) dont care about what the property is worth or may be worth or may not be worth, they pay their rent and get a place to live

it makes zero sense to even associate whether their rent is "subsidised"

thats like telling the cows of a milk farm, they are entitled because the land they live on has grown in value

 

The title of the thread captures it all. Op needs to think clearly about property. If he cant he needs to look at another investment class.

 

this is why I invest in many States, reduces risk

When mining in Perth went south in 2007 I started buying in Melb and Sydney. This saved my bacon and enabled me to continue growing capital. thats the beauty of property, you can play in many markets

Still like to know where you purchased in Perth? If you care to share

inner city and western suburbs Perth seeing strong demand for the right product. Watching this atm

Being an active investor ie developing, adding value can also help

 

Just some random thoughts on reading

@Ambrosius did you get a depreciation schedule done by a QS when you moved out and started renting it out?

Did you get it valued when you started renting it out?

Living in NSW and looking to move regional and down to 1 wage with the Perth property no longer bring in rental income will impact on the hip pocket even further

Options are to rent it out or sell it I guess, not sure why you're worried about it being positive cashflow rather than negative cashflow, that a good thing, you're making money? Are you ever liley to move back into it?

Great work smashing the mortgage down over the years and building equity

I was curious as to how you lost "all" of your Super in 2008, the markets didn't crash to zero

Whats your accountant say about this strategy tax wise?

Isn't the CGT proportionate to time as PPoR and Rental?

You're supers in 100% cash currently and you're waiting for the next crash to buy in?

 

Too long didn’t read.

But all failures (and successes) are a part of your experience. Stick to what you’re doing and it’ll be fine as you’ll get smarter on the next opportunity.

 

My super went from 60 something down to $6k.

 

Hi Y-man

Are there any commerciat REITs and property investment trusts that you recommend?

 

given the sort of numbers for your property, 50k is a drop on the bucket?

 

Yes, but many people have been infected by the illusion that because property prices are so high and money is flowing freely, that money is easy. To the point where property price ranges are given a range that differs by an annual salary. Property prices in the millions incrementing in a hundred thousands over a few months. But look how long it takes and how hard it is to bring in a real 80k after tax salary through your door and then keep it safe from expenses.

Do you know how hard it is to actually earn from work $500,000 over 10 years?