Hi all,
For my first 3 IPs I did the typical newbie mistake of putting in cash for the 20% deposits.
I now understand what I should have done instead - and apart from using a time machine, there's no way to change what has been done already.
Lately I've been toying with the idea of selling an IP to fund another one - setting up the next IP in the correct way of course. Maybe buying in another state or via SMSF.
Naturally I have CGT, selling costs, and buying costs to wear.
At which point would it be "worth it" to sell an IP just to free up the cash that was used as a deposit and to set it up the right way? I'm not talking about a lot of cash tied up in the deposit - $40k to $60k depending on which IP I sell. Would you just shrug your shoulders, learn from the mistake and refinance the IPs instead of selling to get the cash back?
Thanks
Tess
For my first 3 IPs I did the typical newbie mistake of putting in cash for the 20% deposits.
I now understand what I should have done instead - and apart from using a time machine, there's no way to change what has been done already.
Lately I've been toying with the idea of selling an IP to fund another one - setting up the next IP in the correct way of course. Maybe buying in another state or via SMSF.
Naturally I have CGT, selling costs, and buying costs to wear.
At which point would it be "worth it" to sell an IP just to free up the cash that was used as a deposit and to set it up the right way? I'm not talking about a lot of cash tied up in the deposit - $40k to $60k depending on which IP I sell. Would you just shrug your shoulders, learn from the mistake and refinance the IPs instead of selling to get the cash back?
Thanks
Tess