Should I sell?
Q.
I bought a property in Potts Point in 2001 for $291k and lived
in it for a year then rented it out until now at $400 pw and I rent
elsewhere on my own for $400 pw. My unit is now worth about $400k
but unfortunately I have been drawing down on my mortgage
recklessly and now have a mortgage of $300k and a VAR interest rate
of 8.7%. With possibly more rises on the way I am wondering whether
you think I should sell my apartment and put the $100k in the bank
while the interest rates are high.
A.
You should always hold your real estate if at all possible
because there are heavy costs to sell and then re-buy. Provided it
is an attractive property I suggest you do all you call to retain
it. Don't forget that money in the bank is attacked by inflation
and tax.
Each week financial advisor Noel Whittaker answers your
questions.
