REHAB: SELL OR HOLD?
I live in South Africa. I bought a Property in Durban for R370 000. Rehab would cost R60 000. If I Sell - it's estimate at R550 000 - to leave a R 120 000 profit.
If I hold the same property - I could refinance and cash out R 50 000 (and still cover the bond by renting) and still keep the property.
What should I do - SELL or HOLD?
hi,
what does R370 000 translate into US dollars? that might be some information that people could use to try and give you advice.
You should do whatever you're comfortable with doing.
If you want to be a landlord, and the property would be fairly easy to get and keep rented, then that would be the way to go.
If you would prefer to make your money now, then you should sell.
Roger
Freshman -
R370 000 : $ 50 000
R 60 000 : $ 8 000
R120 000 : $ 16 000
R 50 000 : $ 6 500
Awaiting your reply.
Bearo,
I agree with Raj about your comfort level. But I always say that this comes down to numbers. You know how much you can make now. How long would you have to hold the property to get your profit out?
Now are you happy with waiting that long?
Can you find more deals like this?
If you can perhaps you could sell this one and reinvest your profit in the next deal.
Remember I am biased I like rehabbing.
so houses go up by how much a year there ?
DavidBrowne
Property increase by a rate of 12% PER YEAR. One percentage point per month.
Cheers
Peter
With appreciation like that, why not refi to the point where the rent just covers the payment. Take the $$ from the refi and do it again. In the US the gain isn't taxed until sale. Then we have the option of exchanging up "Tax Deferred". Don't know how your tax laws treat you.