澳洲Australia property Beginner help - sell or rent it out? | Sy
在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m
New to the forums and to investment properties, and hoping for some opinions to help out our decision making. We purchased our PPOR just over a year ago for a somewhat bargain price of $375,000. Its a great location, but is an old asbestos cottage (roof, ceilings, walls all asbestos). We've spent about $25,000 making it nice enough, but have just taken out a lease on a large house in order to move in with my elderly parents to care for them, while we look for a good place to buy or build our PPOR for that same purpose.
So we had decided to sell it, and listed a few weeks back for around $420,000 to $440,000 and its gotten a lot of interest form the first home open 2 weeks ago, with a further 10 seperate appointments through the doors in the past 3 weeks... a few people seem close to making offers, currently seeking return inspections. Bank valuation a few months ago (before improvements) was $395,000. We owe about $315,000. Combined income is around $150,000.
But now we are starting to think about hanging on to it, as we are able to rent it for $400 to $420 per week, which is only about $120 a fortnight short of paying the mortgage payments. The block is in an unbeatable spot, and may one day (5 to 10 years) have development potential once the mains sewer is connected (is on long term Council plans) and rezoning likely follows (2000+sqm town centre block, in outer metro Perth), so a reasonable likelihood of good capital growth, and seemingly a good rental return. Water heater, oven, aircon etc all brand new so no big expenses on the horizon.
So is this the sort of property we 'hang on to at all costs'. I read a few times in here that the general rule of thumb is 'you dont sell good properties, only buy them'.
We have about $100,000 in short term debts (car loans, family loans etc) that we could clear if we sell, but have budgeted that with keeping this property and renting ourselves we could clear those debts within 2 years, before looking for a new PPOR to buy.
Any advice for a newbie?
Thanks in advance
I think you've distilled the message quite well. If it is a good property that you think has good future growth then you'd be silly to sell it unless you really had to. Once you sell and buy another you have to pay stamp duty again, take time/effort/research to get a good buy etc. It all adds up so if you already have something good, then stick with it as long as you can afford it.
Thanks for the reply. Clicked on your development link - apartment designs look very flash - hope it works out well.
Yeah, we are leaning towards holding the house, unless the banks want it gone to qualify for a property we've found...
Anyone got thoughts on the below property?
$680,000 for a brick and tile 3 x 1 on 8000+ sqm, just around the corner from us so a similar location - walking distance to shops, cafes, pubs. Currently zoned R2.5 (subdivisible into 2 x lots) but the Council's new Planning Scheme (about 12 - 18 months away) has it changing to R5 (4 x lots). Its a straight forward corner block that'll carve up neatly into 4 x north/south aspect rectangle lots, with the existing house sitting neatly on one of them. 2000sqm lots are consistently selling around $290,000 - $310,000 in the area.
So by my calcs, it'll be owing me $680,000 + ~$45,000 subdivision costs + $30,000 holding costs (after rent from the house - sellers want to rent back) = $755,000.
It'll get me a house lot worth $480,000 - $520,000, and 3 lots worth ~$300,000 = $1,380,000. Thats what, a 90% return isnt it? (less CGT on blocks if when I sell them)
Will probably sell the house lot (after making it PPOR for at least 3 months) and one vacant lot to fund building on the other two, giving us a dream home PPOR + 1 investment property. ($750,000 PPOR value + $650,000 2nd house = $1,400,000, with a mortgage of around $550,000 and rental income of $600 per week). But probably got it all wrong :/
Hmm... time to see a financial planner (specialising in property) I think - anyone able to recommend someone good in Perth??
It certainly sounds like a good idea on paper. Is there a reason why no one else is snapping up these blocks if such a good profit can be made?
BTW - $45,000 in subdivision costs sounds quite low - you always need to budget for unseen things.
No mains sewer keeps costs down, so only water headworks, power dome, connecting underground to existing house, surveying, and planning fees.