Whats your opinion on my current financial situation / plans?

I’m writing this thread to ask your opinion on my financial situation. I think its easiest to list the facts about my situation and ask questions below:

- I live o/s and am a non resident for tax purposes

- I have an IP in a country town that has tripled in value since early 2000. I’ve heard from numerous sources that the sales market is strong and active at the moment. Recent sale prices of comparable properties confirm this.

- I have 3 yrs remaining on a 5 yr loan term. Break fee would be 3750 this month. I’m leveraged around 33% based on current market value.

- There’s a chronic shortage of rentals where my house is and thus I put the rent up each year. There’s never an issue to rent it out and demand is > than supply.

- After the mortgage and insurance I have over 1k a month in income to spend over here.

- A few yrs ago after selling my principle residence I put a large amount of cash on tech shares on Nasdaq. 1 stock in particular (facebook) has proven to be a winner- 48% gain in 2 yrs. Gains are tax free as I’m a non resident of oz

- I’m married to a dentist and we want to open a clinic next year

- I have money in an online saver account but that might run out next year.

- I work over here but the salary is low. I don't have the capacity to borrow anymore based on my income.

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To fund the clinic its logical to sell the shares not the IP. Obviously I would have to pay CGT on the sale of the IP. The reality is that I had to wait 15 yrs for it to triple in value. Whereas the shares have increased 48% in 2 yrs. FB might have a stock split this year and I believe the company has excellent growth/ revenue prospects in the coming 5 yrs that I will make further significant gains. Obviously its high risk and subject to market volatility and exchange rate risk.

Also with the IP… it dates pre-war and there is the issue of maintenance if I hold onto it for another 5 or 10 yrs. Termites, tenant issues etc.

It’s a hard decision to make but my gut feeling is that I can make serious money in the next 5 yrs out of FB alone. I traded in and out of nexflix and did well from that. If my IP was in the Eastern suburbs of Syd then I would never sell. But because its in Hicksville and I've done ok out of it I think I should offload it.

Before I met my wife I thought that I would hold onto the IP and use it to fund my retirement in the years to come. But now I have a baby things have changed. The wife will finish her orthodontics course next year and we will be ready to open a clinic. I think the returns on the clinic will be excellent if we do it right. I'm sure the returns will be greater than if I leave my money in the country property market.

What are your thoughts on this matter.

Many thanks

 

From the exuberance in your post maybe sell the IP and purchase more FB.

Then get a bank to fund the clinic.

And consider the very low probability that any dentist in history has ever lived in poverty...

 

Is it a first world country? Or is it somewhere that a new business is pretty cheap to start up?
Is it possible to keep the shares, keep the IP, and borrow to open the new business and have the cash from your investments help pay off this debt?

 

Your suggestion is the ideal situation. Where we live is a developing country but the small city we live in is affluent. The banks will not lend to me but only the wife.

I feel it is time to offload the safe bricks and mortar investment and take a risk.

We are living in the golden age of mobile advertising. FB is well ahead of the game for many reasons. I think that I have to just make a decision and stick by it.

cheers