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About Me

Richard Chapman

Mortgage Broker
Chapman Finance
Bardon, Queensland
I'm based in Brisbane and offer a wide range of mortgage broking services.
Specialist niche lending areas for me are:
Professionals - accountants, lawyers, engineers, medical practitioners: Doctors, Specialists, Dentists, Vets, Optometrists and a few more
Small business owners - self-employed people running small businesses

My Activity

Q: I have an investment property in Darwin, which has no running at a loss due to the slump in the Darwin real estate market, I am seeking some ideas on what to do with it?
A: Hi Toby, first let me say that I'm not an expert on the Darwin property market. I can see though that the NT government is predicting a continuation of weak economic growth in 2020 which will certainly keep a lid on property prices and rental yields in the region and potentially mean that your losses will contuinue.
Speaking generally about what to do with a negatively geared investment property then, regardless of its location. So, to be clear, this is general advice, not advice specific to your situation. To obtain that you should see a licensed financial adviser - a planner or accounant with RG146 certification.
Clearly the goal of any form of investment, property, shares, etc, is to make a profit. If you are making a loss on your investment property each year then sure you’re saving on tax, however you are still losing money!
If you have at least 20% equity in the investment property and haven't reviewed your mortgae recently (i.e. within the last 6 - 12 months) then I'd suggest do that with a broker right away as it is very likely you can reduce your interest costs and potentially reduce the cash losses by refinancing your loan.
If that's not the case then you should consider the bigger picture of your wealth growth plan with your financial adviser and consider investing your capital in another form of investment which is going to produce the sort of return you are looking for.