Long time reader, first time poster.
I purchased a little PPOR studio a year ago on Sydneys North Shore for $160,000 and the people next door just sold their identical unit for $230,000. Is it just me or is the market going crazy at the moment?
To me the studio is not worth $230,000, so I’m seriously considering selling but everyone around me (friends, family) are urging me to hold on.
The current estimated rental from the place is $320 per week.
Opinions?
Hi freshy,
i guess it depends on your goals, are you looking at a buy and hold strategy with positive cash flow or are you more interested in the buy and sell making capital and doing it over again?
I guess from my perspective, I’m more interested in the buy and sell option and doing it again. At least in the short term until I raise more capital.
The one thing I’m fearful of is not the market booming as I would have already made my profit on the property; it’s that the market might fall and the pricing of the studio at the moment is a temporary high.
Also, from my understanding, as it’s my PPOR, it will be CGT exempt and once sold I’m free to purchase another PPOR.
Do people actively buy and sell on their PPOR?
Is it an option to make the studio and investment property and use the equity to purchase something similiar or vice versa?
Hi maree_bradross.
Yeah the option is there and in fact I did consider purchasing an IP with the equity from the studio but the prices in Sydney at the moment are crazy.
If I had something that would return 10% II would try and duplicate that as a success story. $160 purchase and $320/wk rent is a flat 10% so depending on strat and management costs you are sounding like it is a winner. Get a val, dip into equity and go again.
Nothing but fear holding you back.
Happy Hunting
DD
DD wrote:If I had something that would return 10% II would try and duplicate that as a success story. $160 purchase and $320/wk rent is a flat 10% so depending on strat and management costs you are sounding like it is a winner.I am off the same thinking but right now if the property is valued at $230k, wouldn’t it make sense to sell and then look for another $160k stunner? Especially since it’s still considered my PPOR, there won’t be any tax implications.
Your PPOR is never an investment, it's a lifestyle. Rent where you want to live and buy where you want to invest.
Never sell, only buy, buy, buy.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
