Hey everyone!
This is my first ever forum post…ever, so please go easy! ha!
Just want to get some peoples opinions on my current property dilemma. I am currently paying off a unit in Darwin with a rental income of 220 p/w. Repayments however are only 105 p/w.
I am looking at purchasing a house in brissy (to live in) for 308,000, and after all my expenses have been paid, I should have about 200 p/w left over. Would it be wise to sell my place in Darwin to reduce the payments on the property in brisbane, and to possibly use to finance another investment in Brisbane, or hang onto it as it does provide me with a source of income?Constructive criticism is appreciated!
Cheers,
Nic.[chill]Hi vic.nt
First of all, welcome to the forum.
If I were you, I will hang onto the unit in Darwin as it is putting cash in your pocket. Also, from what I have seen, Darwin has experienced capital growth as well, so it is a win-win situation there.
Hope this helps.
Sanjiv
“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson MandelaThats what I was thinking. Then I heard on the news tonight about the expected housing shortage in Brisbane within the next few years… So many choices, so little experience!
hmmmmmm!
Holding the property in Darwin should not affect your. In fact, the positive cash flow should help improve the serviceability for your future loans.
Experience comes from time and practice. However, you can overcome the shortcoming by building a team of professionals around you, that is, good accountant, finance broker, property manager/s, maybe buyers agent, real estate agents, etc.
I think you should start looking for properties in your target market and at the same time speak to lenders.
Good luck
Sanjiv
“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson MandelaHi Nic
Has the Darwin property increased in value? If so, what is it worth now? It may be worth taking the capital gain. How long have you held the property?
Regards
Demkel
Thanks for the words of wisdom Sanjiv. I want to keep the property in Darwin for that very reason, however if it was to be sold, it would ease the large debt I am about to put my self in in Brisbane, and als allow me to have a look at some investment oppurtunities in Brissy.
The property in Darwin has gone up in value. I have had it for the past 4 your years. i purchased it for 120,000, and is currently valued at 240,000.hmmmmmm!
So while the rent in Darwin sounds good against your loan repayments, it is a poor % against the actual current value. Would you expect further capital growth? Can you get something in Brisbane that you could maybe tweak with a reno for better return? Darwin may have just gone up with the rest of the country, there is a lot of talk about Brisbane’s growth, but will it happen? If you sell Darwin and have a capital gain, then your income goes up and it may look favourable with the banks? (don’t know if this is true and willing to stand corrected if not)
What is your feeling about Darwin dropping? Do you feel the sources that say Brisbane will rise are reliable? Do you want to lock in your profit and have the challenge of the next IP? Do you check on the Darwin property now, but will not be able to later?
So many questions only you can decide. Hindsight is always wonderful and is hard to judge with foresight.
Good luck!
kjs
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