My husband and I just returned from 2 years o/s.
We have two properties:-
one 3 bed/1 bath house in Blacktown, NSW, purchased for $220K in 2002, owing 170K on mortgage, currently rented for $270 per week.
one 3 bed/2 bath apt in Russell Lea (Drummoyne), purchased for 460K in 2005, owing 370K on mortgage (this is on fixed rate of 6.7 until Oct 08), was rented for $430 per week.
Our combined income is around $265K.We're just not sure whether to sell one property, and if so, which … or perhaps rent for a while and let our properties realise a little more value.
Any input appreciated !!
you should sell both of them as the price may go down even further, you may only get $200,000 for blacktown in 6 months time (peak oil and distance of Blacktown), Russell Lea you may lose around $50,000, so sell now before it gets worse, plus how secure is your job? recession cause unemployment
You have to be kidding TT552. Here is a person who has one house with a shortfall of around $100 a week and a Unit that I presume they are currently living in (as it was rented) with a loan value of $370,000 and a service cost of what? guessing around $1000 a week. So thats a total of $57K a year on hosing and an income of $265K. Talk about doom and gloom.
You only make a loss if you listen to these doom and gloomers and secumb to their pressure to sell so that they can push prices down to their affordability.
I say if you feel comfortable with your outlays and job security and have a few Dollard over – Buy another property. Rent rises will be on your side as well. Remember selling costs will be around $25,000. In your situation I believe that you would be crazy to sell.
Jon
Jon Chown wrote:You have to be kidding TT552. Here is a person who has one house with a shortfall of around $100 a week and a Unit that I presume they are currently living in (as it was rented) with a loan value of $370,000 and a service cost of what? guessing around $1000 a week. So thats a total of $57K a year on hosing and an income of $265K. Talk about doom and gloom.You only make a loss if you listen to these doom and gloomers and secumb to their pressure to sell so that they can push prices down to their affordability.
I say if you feel comfortable with your outlays and job security and have a few Dollard over – Buy another property. Rent rises will be on your side as well. Remember selling costs will be around $25,000. In your situation I believe that you would be crazy to sell.
Jon
Yes, Jon, that is what we're leaning towards – ie not selling. Thank you. The unit in inner west still has a long way to go in value and the outer west unit needs time to recover, although we'd still make a profit on it I'm sure, and the rental income does cover mortgage payments. Although rental market is tight, we're actually consider renting ourselves for a short while to build a little more savings for another IP. We still need somewhere to live ourselves (currently not living in the unit and feel it's too small).
Jon Chown wrote:You have to be kidding TT552.Jon
Thanks for your common sense Jon. I also believe you would be crazy to sell – especially considering you income is relativity high. Hold on to the properties and enjoy the rewards in the future!
Cheers Banjo
Personally i think now is the best time to start a cult as there seems to be no shortage of willing sad depressed doom and gloom followers.
Follow me everyone. Just give me all your money and i will tell you the answer to peak oil.
PS. Actually. Funny story. A cult that has its compound near me( Sad but true) handed out a news letter around 3 months before the year 2000 stating that the world would end in three months time. Yet on the back was a form to fill out to get a 12 month subscription. HA HA HA. I guess they must have planed on printing it in heaven.
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