hello ,
First time user of this forum. I have an IP at Durack in Darwin. Purchased it for $237,000 in 2000 and valued at $400,000 in Jnauary, 2007. It is a DHA house and has some 6 years left on lease at high yeild. Considering selling darwin to pay off my PPR but am concerned that i am jumping the gun and that DARWIN may have further growth to go in this current cycle. hate to sell up now and find I could have made more money and get the better result.
What is the general thoughts please. I have another DHA I purchased in medowie last June but that has already dropped a bit since I purchased it. Bit of a worry that one.
Cheers
Parraboy[evo]
Hi Parraboy,
Looks like your choice of an IP in darwin has done well, almost doubled in 7 years. Is Durack out near palmerston? I was born and bred in Darwin, and as growing up there always remembered it as being expensive for rentals. I dont think Durack was even established when i left in 1985, but i still frequently vist my daughter and family up there, and am amazaed at the amount of building activity and growth happening there year by year.
I think the local government are doing a great job, and the town has plenty to offer in the future. The area from the northern suburbs out to howard springs is virtually joined up, and could only imagine house prices would continue to appreciate with the urban sprawl heading further south all the time.
In my opinion, when you take selling costs, capital gains and stamp duty on your next IP in to consideration, why throw that away, you have an IP that has already proved itself and is probally cash flow positive currently.
Regards
Wayne
“What is the lap record, and which way do i go?”
Yes I tend to agree unless circumstances are tough and you really need the cash why sell. Markets will often have set backs but usually continue forward.
The equity that you have grown can be used to purchase more property if you desired
Wayne
Mortgage Adviser
Email [email protected]
http://www.alphamortgagesolutions.com.au
First home buyers, investors, refinace, loan consolidation, equity loans, free service we come to you!problem with Darwin is the high fees property managers charge, however you are protected from that as DHA have their own deal at 16.5% however they also pay for minor maintenance issues and you have no vacancies.
Thank you guys. Given me some confidence to hang on a little longer as it has done well and I may be jumping off a winner. very impressed with this forum, and obviously the quality of the people who take the time to comment and give novices like me assistance. Thanks again.
parraboy
Hi, I have two investment properties in Darwin, one in Stuart Park and one in Milner. The last few years have been good, 1997-2002 was lean and then it jumped. I agree with the other poster that if you dont need the cash why sell. I understand Darwin is going well, on the back of the Gov/Mining/Tourism and of course in Palmerston the millitary. Palmerston needs the military more than the rest of Darwin, so as long as you have done your research on Palmerston and are happy, keep it. For the record I am not selling, but think the gains may be a bit more “normal” in the next few years. Especially in the unit market. Good luck anyway! [biggrin]
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