Hi All,
I'm sorry if this is a bit vague but any advice would be greatly appreciated.
My husband and I bought a house in Morwell Vic in Sept 2012. We fully renovated it with new carpet, blinds, lights, paint, tiles, kitchen etc.
It is doing well to hold as we don't have to put any money into it each month and our tenants are great.
Having said that, the price hasn't moved up at all and I don't see it moving for a while. We are wondering if we should sell it, get the money out of it and then buy somewhere else where we could renovate again but also somewhere that will have some capital growth in the coming 12 months?
Does this make sense? I just don't want to wait around for years before it increases.
If we did sell, we would look at buying somewhere within our local suburbs that we can live in and renovate (and possibly get a subdivide opportunity block as well).
Any thoughts are welcome.
Thanks,
Hi there
Property is a long term asset – you've only had it for just over a year so it's unrealistic to expect too much growth from it in a short period.
I don't know the area personally so can't comment on whether there could be some growth in the future – but I think it's just a bit too short of a timeframe to start thinking about selling up.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Thanks for your advice Jamie.
What you have said is the only reason why we haven't put it up for sale.
The thing I keep thinking is that its a small country town and whatever research I do seems to point out that it will be a while before any growth happens.
It was our first IP and reno job so it was great experience but we are wondering if we sold and bought in Melbourne we might be able to get the growth a bit quicker.
Plus, we are renting and the idea of living in a home we own (even whilst renovating) is very appealing.
Our goals have kind of changed too, we are wanting to live in, renovate and preferably sell and repeat to build up some cash.
Ahhh – the penny just dropped
I think you might be one of my clients
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Dreaming,
Can you provide more detail here? e.g. did you buy it as an IP? Was it ever your PPOR? What is current value, and current mortgage? etc.
Of course, if you ARE one of Jamie's clients, you probably have all of this at your fingertips. And anyway, Jamie may well have already answered a lot of what I was thinking.
My thoughts in a nutshell are:-
o If this property is costing you nothing to hold, and perhaps giving you back some nice Tax Refunds, and you have good long-term tenants, are you in a position to draw on it to fund another IP (but this time, move in as your PPOR, renovate, then make it your IP down the track).
o Of course, the funds might not be there, or serviceability, or desire…… And all of those are important. So, what can you tell us?
Benny
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