After our tenants went rogue earlier in the week, my wife and I have decided it is time to divest our investment property in Far North Queensland.
Most people will expect their investment to grow in value, and houses have always been seen as a sure bet to increase. After all, no one wins Monopoly without buying a lot of houses.
Unfortunately for us, it is time to sell.
Hopefully, the property will sell quickly. With more people working remotely due to the coronavirus pandemic, then a house in a regional area becomes an attractive place to live. It is these homebuyers who are fleeing the cities that might be interested in buying our property.
For taxation purposes, you can only offset a capital loss against another capital gain. Unfortunately, we can't offset this loss against any other income, so we are just going to have to accept it. Groan!
In hindsight, we bought our investment in the wrong location. We were swept up with the hype and ultimately made a poor decision to buy. If we were to choose to buy another investment today, we would engage an independent homebuyer advocate to advise on the best place to buy a house as an investment.
Waiting out for the prices to increase no longer seems an option. After thirteen years, we will make a capital loss, and it's time to cut and run on this investment.
Most people will expect their investment to grow in value, and houses have always been seen as a sure bet to increase. After all, no one wins Monopoly without buying a lot of houses.
Unfortunately for us, it is time to sell.
Hopefully, the property will sell quickly. With more people working remotely due to the coronavirus pandemic, then a house in a regional area becomes an attractive place to live. It is these homebuyers who are fleeing the cities that might be interested in buying our property.
For taxation purposes, you can only offset a capital loss against another capital gain. Unfortunately, we can't offset this loss against any other income, so we are just going to have to accept it. Groan!
In hindsight, we bought our investment in the wrong location. We were swept up with the hype and ultimately made a poor decision to buy. If we were to choose to buy another investment today, we would engage an independent homebuyer advocate to advise on the best place to buy a house as an investment.
Waiting out for the prices to increase no longer seems an option. After thirteen years, we will make a capital loss, and it's time to cut and run on this investment.
abrahamKim