All Topics / Help Needed! / Sell?? Rent?? or Buy again??

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  • Profile photo of peterpithpeterpith
    Member
    @peterpith
    Join Date: 2010
    Post Count: 22
    February 8, 2010 - 8:40 am

    Hello,

    My name is Peter, We purchased a property west of melb 1 year ago as a first home buyer for $265k.We renovated spending $20k with intention to live in,However my wife and I are now looking after mum rent free at her place full time.

    We are now unsure what to do???? Agents esitmate $400-420k to re sell and around $320 to $340 for renting.

    We owe $245k. Our savings $20k. My question's for all you invester's are:

    1.Can we buy another IP?
    2.Should I feel bad renting out since we renovated the place to a high standard as we were moving In?
    3.Do we sell or rent?

    It would be great If I can get some sort of guide from a professional invester view??

    Regards,

    Peter Pith

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    February 8, 2010 - 9:14 am

    Never sell.  You'd just have to replunge the money into another property in order to stay on the ladder anyway, and you'd have to pay stamp duty all over again for the privelege.  Why would you do that?

    IMO:

    Keep it and rent it.  At the same time, get it revalued by the bank and refinance it if necessary.  This will all help produce equity to buy another place :-)

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    February 8, 2010 - 9:34 am

    Hi Peter

    Personally i like the attitude of never never sell so if it was me i would use the equity and gear against and then use the raised funds to buy again however thankfully everyone is different.

    Remember the costs of selling and then in turn the cost of repurchasing.

    Equity position seems ok however i cant comment about the serviceability as there is not enough information to hand.

    Richard Taylor | Australia's leading private lender

    Profile photo of map11map11
    Member
    @map11
    Join Date: 2009
    Post Count: 1
    February 8, 2010 - 11:21 am

    Hi Peter

    I'm a budding newbie investor who l8 last year signed up to the 250k club and along with my father in law am awaiting this years results mentoring 2010 group.
    Looking at what you have written, I think it depends on what your trying to achieve out of your investing.
    Whats your desired end result and work backwards from there, you need to do your due diligence and work out where this property fits into your investing plan.
    for eg. If you were to sell, would this not free up more money and increase your investing kitty allowing you to maybe (looking at Steve's 80/20 LVR) put down two deposits for CF+(Cash Flow positive ) properties or 1 with a bigger deposit making it a CF+ property or possibly allow you to look at different deals depending what your end goal is out of investing.

    Anyway I could be way off the mark,just putting in my 2 cents worth.
    All the best in what you chose to do and your investing journey.

    Cheers.

Viewing 4 posts - 1 through 4 (of 4 total)

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