liteweight
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Oops went out to get paper in the middle of my post and didn't see Dreamerb's reply which is put more eloquently than mine and I agree with everything s/he said.
Need advice. Which property should I sell?
- Thread starter nbc
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hi bob,
I'm not 100% sure what I would do with the money but initially I would place it in a new zealand savings account I opened when I worked there for a short period recently and gain 7.5% interest.
What do you think? It would earn more than paying off any of the int only mortgages where the effective return would be 5%.
nbc
I'm not 100% sure what I would do with the money but initially I would place it in a new zealand savings account I opened when I worked there for a short period recently and gain 7.5% interest.
What do you think? It would earn more than paying off any of the int only mortgages where the effective return would be 5%.
nbc
If the money is only going to be used for a 'passive' investment such as cash deposit, then the transaction charges of selling the house could outweigh any perceived advantages. Additionally, over the longer term, you are more exposed to inflationary risk with cash.
It might be worth considering what are your longer term goals for your investments. Are you using the houses to fund your retirement? Do you need a wad of cash in the next 5 years? Are you planning to set up your own business? How are your retirement/pension plans? ... etc.
Finally, before deciding to sell (I'm not convinced there is a case for it yet... the case becomes compelling when you move funds from a good place to a better place), are you confident that you have maximised your potential return from the existing properties? The earlier point from Liteweight touches on the below-market rental income. But other ways of maximising your return with a little further equity release could include attic conversion, interior re-design, extension...
It might be worth considering what are your longer term goals for your investments. Are you using the houses to fund your retirement? Do you need a wad of cash in the next 5 years? Are you planning to set up your own business? How are your retirement/pension plans? ... etc.
Finally, before deciding to sell (I'm not convinced there is a case for it yet... the case becomes compelling when you move funds from a good place to a better place), are you confident that you have maximised your potential return from the existing properties? The earlier point from Liteweight touches on the below-market rental income. But other ways of maximising your return with a little further equity release could include attic conversion, interior re-design, extension...
Thanks bob for your reply.
I know what you are saying. I have no immedeiate plans so that was why i was going to put it on deposit earning E750 after DIRT (proceeds of sale will leave 150,000 aprox) which is greater than my rental income currently. Once I see a good opportunity I may reinvest it then. My primary concern is I have 3 houses in 1 location. There are no problems whatsoever letting them now but that may not be the case in the not so distant future. I'm just thinking ahead.
nbc
I know what you are saying. I have no immedeiate plans so that was why i was going to put it on deposit earning E750 after DIRT (proceeds of sale will leave 150,000 aprox) which is greater than my rental income currently. Once I see a good opportunity I may reinvest it then. My primary concern is I have 3 houses in 1 location. There are no problems whatsoever letting them now but that may not be the case in the not so distant future. I'm just thinking ahead.
nbc