Hi,
Am from the northern beaches. Bought an investment property in Umina Heights a while ago. Away from the “flats” -lovely big block with bushland and ocean views (similar to the feel of Bilgola Plateau). Flipside of Pittwater – only a 20 minute ferry ride back to the northern beaches; an hour and ten on train to Sydney.
Tenant moved out of our property in Umina so we moved in leaving behind our rental apartment in Avalon.
Have a spare 150k. With today’s uncertainty with the GFC and HUGE real estate prices in the northern beaches, we have decided to give our propery in Umina a go.
Still uncertain about the area. Stunning place but the coucil and some of the locals are NOT so (NOTE: I said “some”)
Do we invest the $100k (leaving 50k reserve) in the property, make it really nice , count on capital gain or do what is necessary so we can re-rent (part of the reserve) and look to invest $100k else where? Not much that $100k can do considering we like northern beaches.
I know replies will be dependant upon what our goals are but we are flexible. We are prepared to live here and invest to if potential is to be made….or vice versa.
All opinions greatly appreciated. Thank you.
Oh…and if the area does not EVENTUALLY improve, then what? Hold, rent or sell? Sell doesn’t give us much – if not less than what we paid for.
Looking forward to feedback. Cheers.
Perhaps if the land is sub-divisible you could subdivide and sell part of the land – or develop it – while retaining the existing dwelling on a smaller allotment. Two bob each way, as they used to say in the old days.
Hey QM,
I would go back to renting on the Northern Beaches (its heaven!) and re-rent out your Central Coast Property – plus I’m sure the commute it a killer from the Coast?. You could then invest your 150K in higher growth areas i.e North QLD and the Hunter Region of NSW.
I live in Warriewood but had IP’s in Townsville and Newcastle.
DC
Thank you for the replies.Christianb – land is not sub-dividable so can’t go with your suggestion!
Dcwwood – am thinking along your thoughts….
Either way, the property does need some work so can anyone recommend a builder in the area?
QM wrote:Hi,
Not much that $100k can do considering we like northern beaches.I know replies will be dependant upon what our goals are but we are flexible. We are prepared to live here and invest to if potential is to be made….or vice versa.
.100k is plenty, as im presuming you be leveraging the rest from the bank ?
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
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I would definitely rent in northern beaches and rent out the Umina place, I assume the rent received from Umina would almost cover the rent you pay in the northern beaches? If not, then I am sure with the tax benefits you would hopefully get close to it?
As for reinvesting the 150k you have, there are a whole bunch of scenarios that the future can have, trying to look at each and every outcome to try and see which option can give you the best result is definitely tricky, but developing a spreadsheet and crunching the numbers should be able to show you which option would be the best financially at least?
Also note, if you are unsure and uncertain about what the future will hold, then I don’t really see a problem with ‘investing’ it back into the Umina loan? You did not mention if you own this property outright or not? I assume there is still some loan on it? But if you put the 100k back into the Umina loan, assuming you had an offset facility set up then you can guarantee an after tax return of 6.5% or whatever interest rate you are paying? Just a thought anyway.
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