Hi everyone, I am a 20 year old looking to move to a new town and hence am having to make the decision of whether to keep my current residence and rent it out or sell it.
My current house is worth about $140000 (I am living in a rural area in Queensland) and I predict that I could rent it out for $160 a week, from what I have heard talking to other people. The repayments on the house at the moment are $169 per week.
The house that my fiance and I are looking to buy (in the place that I am looking to move to) is $245000. My question is should I keep my current house as a rental property as a long-term investment or should I sell now (I will make approxiamtely $10000-$15000 if I sell the house for $140000)?
Any comments or suggestions would be greatly appreciated!!!
I’m no expert, but if it was me this is what I’d do.
A) Keep the property. As it stands you are reasonably close to breaking even already.
Look for ideas to value add cheaply to increase your potential rent.
– Get some cheap furniture and advertise as a furnished dwelling
– Negotiate with the tennants see if there is anything that you can do to make them more comfortable for a small rent increase.After all the appropriate fees a profit of 15,000 can be eaten up very quickly.
Agent fees, stamp duty getting in to new property, etc will definitely eat in your current equity / profit.
Depends on you income and other assets bank will loan you money against as to wether you can keep first property to rent and buy another. Maybe work towards this and rent a little while.
I would look at the property market in the town I was moving to and see what opportunities are available there as part of my decision process.Cheers
Have_Fun
Look for ideas to value add cheaply to increase your potential rent.
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