Sometimes it is necessary to go back to the drawing board.
You may have a portfolio that is not quite right. You may have had good intentions, theories, dreams or hunches when you bought particular properties but looking back you realize you made a mistake. But that’s OK. As they say, “There is no such thing as failure unless you fail to get back up again.” The successful man is one who fails four times but gets back up five times.
There are times when the best thing to do is sell and move on. Other times, you may need to sell because you did not seek the right advice in the first place and you have the wrong loan in place or have bought in the wrong name. A common example is the client who has bought a home and followed their parent’s advice focusing on paying down the mortgage. Now they want to upgrade and rent this property out. Bad news – the reduced loan amount means the property is positively geared and they will be taxed on the excess of rent over interest. Worse still, they will have to take out a large loan to buy their home and this will be a non-tax deductible debt.
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