G’day All,
Short time listener, first time caller.
We were lucky enuf to get an inner city Melb apartment for investment purposes before the prices went silly in the last few years, and have made a paper profit of around 90k on it. However, with the current glut of this type of accomm. I’m thinking that around now might be a good time to get out.
Problem is i’m having a fair bit of trouble convincing my wife of this, as she sees the money we’ve already made on it and is expecting stacks more to come. My goal is not unlike most in this forum, financial freedom in around 10yrs.
So after some research here and elsewhere, i can see what we could use this money for.
At the mo’ its slightly neg geared, but we are just buying a house to do up and live in and will be refinancing it to interest only, and thus make +ve geared. So i spose the question is hold or sell?Cheers
Chad the LadHey Chad, Welcome to the forum. There is no easy answer to your question as it depends on what you want. Where do you want to be in ten yeas and how are you going to get there. Does this form part of the strategy ? If not enjoy the gain and funnel the gain into something that does what you want and gets you where you want to be. Realise though that if you sell you will cop CGT, that eats into the profit. Hope this helps Chad and try always benchmarking every decision with…..will this bring me closer to my goal or take me further away.
Enjoy
AD [:0)]“Carpe diem, quam minimum credula postero.”
Lat., “Seize the day, put no trust in tomorrow.”
-Horace, OdesGood point AD.
I have a general idea of how i want to reach my goal, but i think its time to work out the intricacies of it.
The general idea is to buy units/semi-detached for between 50-70 to start with, renovate, spending 5-10k max, rent out, revalue and increase LOC on revaluation to go again. This has worked beautifully on our current property, pd 53k 2yrs ago less than 5 min from city in Adel, have spent about 7k doing up (incl a/c & bathroom) and was just revalued at 110k by bank. But i do understand that the CG’s like that can’t be expected for the future, so need to focus on the +ve cashflow.
Do u have hints for how i can develop my strategy?
Hi Guys,
I am only new here, but my view on your situation would be to take a line of credit against it and use that 90k in gained equity to do what you wanted to do with the semi detached.
That way you still have that property, the new one, equity in the new one to get another one etc etc.
Just my take on it
Hi all.
I am glad that the topic of increased supply in inner city Melbourne is brought up.
My question is: Is the increased in property prices in inner city Melbourne a bubble waiting to burst? I was told that with some great educational institutions around like Melbourne U and the RMIT and the continuing influx of foreign students, the rental market would still be sustainable at the present level. What do you think? Is Brisbane a better alternative?
Thanks.
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