Selling 2 investment properties to buy another home?

Discussion in 'Investment Strategy' started by Mermaid, 23rd Aug, 2019.

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  1. Mermaid

    Mermaid Well-Known Member

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    Bronte and Randwick (The Spot)
     
  2. fuzzylogic99

    fuzzylogic99 Member

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    Which part of Gold Coast are you thinking of buying?

    If you have some equity in your Eastern suburb units, why not use it as a deposit for Gold Coast property so you get growth in both areas and no need to worry about CGT and selling cost?
     
  3. Mermaid

    Mermaid Well-Known Member

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    I'm looking at Mermaid waters, around that area. It would be optimum to hold on to Syd properties, that would be ideal. I know very little about loans/mortgage, as I've never had to get one. Researching today and the interest rates are terrifying but so is CGT!
     
  4. fuzzylogic99

    fuzzylogic99 Member

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    Nice area. Speak to a mortgage broker & accountant so that you can make a more informed decision on extracting equity and getting loans/mortgage. If I had to choose between Sydney and Gold Coast, I would hold on to Syd properties, especially in high demand area like Eastern suburbs. From what I've seen, Gold Coast tend to have lower capital gains but higher yield.
     
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  5. Mel_C

    Mel_C Well-Known Member

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    I have been making decent returns from Gold Coast market but you need to know where and what to buy it’s a mixed bag. Keep Sydney properties or at least one. Rent on Gold Coast as mentioned so you can get a feel for best areas.
     
  6. Mermaid

    Mermaid Well-Known Member

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    Thanks for the advice, much appreciated. I definitely need a broker, you wouldn't know any good ones, would you?:)
     
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  7. Sackie

    Sackie Well-Known Member

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    If your looking for a local one let me know I can recommend a great one. Otherwise there are a bunch of great ones on here.
     
  8. Mermaid

    Mermaid Well-Known Member

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    Thanks Sackie, I think a local one would be good. Much appreciated.
     
  9. Mermaid

    Mermaid Well-Known Member

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    OK I have a quite limited knowledge on GC, however after doing a little research I am gravitating towards Mermaid Waters- 3 bed house.
     
  10. fuzzylogic99

    fuzzylogic99 Member

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    General information, not an advice =)
    I think there are a lot of great brokers here in the forum.
     
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  11. Lacrim

    Lacrim Well-Known Member

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    Ok, no brainer with this one.

    Keep the units. Rent in the GC.

    Not all that glitters is gold.
     
  12. Mermaid

    Mermaid Well-Known Member

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    Ok, even if the plan was to stay in GC for 10+ years?
    I had hoped the units would of appreciated more in 11 years. Do you see East Syd market growing exponentially in next 5-10 years, like we have seen in the previous 10 years?
     
  13. Sackie

    Sackie Well-Known Member

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    10 years is a long time, anything can happen. Imho no one really knows what's going to happen. It's all at best, an intelligent guestimate.

    I wouldn't tie your lifestyle to your investments too much. If you really want to move and live long term in the GC then not every decision needs to be in the best interest of financial wealth creation.

    A really wise friend and very successful investor once told me creating financial wealth and creating a 'wealthy' lifestyle rarely go hand in hand at the same time for most people.
     
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  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    If Jess cant sort your options well, youd struggle anywhere

    ta

    rolf
     
  15. Mermaid

    Mermaid Well-Known Member

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    Yes that's very true, the saying "having your cake and eating it too", springs to mind.
    I was reading an old thread, where a Queen song was referred to- "I want it all, and I want it now"'- I think this is very apt. As mentioned in a previous post, in my younger years I didn't have the "investor mindset", not a clue, and let go of a prime peice of real estate, which is now worth a fortune so I think I'm trying to compensate for my naivety all those years ago. Glad to have stumbled across this site though, seems like a great place to start learning.
     
  16. Sackie

    Sackie Well-Known Member

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    I totally understand and I've done similar in the past, didn't end well. At least you have enough insight to see this and I hope avoid the mistake of chasing old ghosts. Imho you need to find a way to just let it go and move on without they baggage. All the best.
     
  17. Cimbom

    Cimbom Well-Known Member

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    I agree with the suggestion of renting for at least a year to see how you like it. Even if your units don’t get the same amount of growth going forward I think they are still good investments as they in locations with a lot of demand and all the fundamentals in place
     
  18. Mermaid

    Mermaid Well-Known Member

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    Thanks Cimbom, I think this is what I'll do.
     
  19. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I would start with calcs on what the net sales would realise aftre CGT and what impact it may have on tax each year. Then model the proposed acquisition. You could find the costly fees (duty, selling costs, CGT etc) are unvaible or very viable. Better to determine this at the start.
     
  20. Sick_of_scams

    Sick_of_scams Well-Known Member

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    I am in the same situation. I am looking for a one-bedder as an IP and a place to stay on and off. Gold Coast. I have stayed up here from Sydney for several months and love it here as a place to have a base. There is quite a glut of apartments up here.

    Loads of traps up here I have noticed. There are developments and developments proposals everywhere and Real Estate agents love to spruik the views but a bit of digging has revealed to me at times there is going to be a high-rise that will block the view and crash your investment price. And they are springing up like mushrooms here.
    I don't trust RE agents anyway but they just seem dodgier up here LOL.

    I wouldn't touch a new off-plan or recent development with a ten-foot pole with all the revelations of dodgy developers, certifiers and poor construction.

    So after an established place that has growth potential, maybe in line for an offer by a developer down the track?? But something in a high demand area for solid rental income. Maybe Air B n B - something got to check as well with Body Corporate that it is allowed. Was thinking around Surfers, Broadbeach or Mermaid Beach areas?

    Or should I be holding off? Any views from the savvy investors here? Appreciated. Cheers.
     

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