I have a IP in crace. Price has gone up significantly last 1 year. Just wondering whether I should hold on to it or just sell move to next IP.
Hi there How long have you held it for? What sort of gain to you think you've achieved? What will you to with the funds from the sale? Personally - if it were me, I'd sit tight on selling Canberra IPs at the moment. I feel that we're at the start of an upswing. Not sure what the demand is like in Crace at the moment - every loan I've arranged has been for construction. Has the building slowed down or is there still a fair bit of development? The location of Crace is quite good - deceptively close to the city, Gunghalin and Belco. Cheers Jamie
Thanks Jamie. If I sell I would probably make 100 k. I was thinking of putting that on PPOR. Than buy another ip against PPOR 100% loan plus buying cost. I thought crace reached the pick as it end of development.
Don't forget that CGT will take a hunk out of $100k. If you did sell, $50k would be added to your taxable income. Make sure you allow for that before using all available funds. If you have HECS or equivalent that could also be affected. I sold a property last FY. It was a significant profit, but I hadn't figured on $17k of my tax bill being HECS repayment.
Agree with Geoff - that would be my concern too. Pocketing $100k sounds nice - but if you haven't factored in CGT and agents commissions, that amount can drop considerably. There's also the transactional costs. You would have paid a fair bit in stamp duty, etc when purchasing - and you'll be up for these again when you purchase your next property. Personally - I wouldn't sell right now and would keep a close eye on how the market's performing. Spring will be here soon - and we know that Canberran's love to buy houses at this time of the year! Cheers Jamie
