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ACT Crace, Canberra

Discussion in 'Where to Buy' started by fairy, 24th Jun, 2015.

  1. fairy

    fairy Active Member

    Joined:
    24th Jun, 2015
    Posts:
    42
    Location:
    Canberra
    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.
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,145
    Location:
    Canberra and Sydney
    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
     
  3. fairy

    fairy Active Member

    Joined:
    24th Jun, 2015
    Posts:
    42
    Location:
    Canberra
    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.
     
  4. geoffw

    geoffw Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    2,136
    Location:
    Canberra
    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.
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,145
    Location:
    Canberra and Sydney
    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