200K book loss, crystalise or ride out?

I would also hold it given the location....

 

You guys are still young and there are many cycles to come and as a long term play you should be fine as long as you can hold both properties without stress.

 

So, you have one loan of $620k and rental income of $785pw. I would assume that once you take depreciation into account, that you are over all cashflow positive by a small amount. Like others have said, I'd hold.

Property is a long term investment. Don't be impatient. Let time work it's magic.

 

I know the area. My vote would be to hold. Is there anything you can do to improve the rental income?

My place in HH was a dog and always rented for less than $300 per week. The new owners polished the floor boards and got $5 a week more than me

 

Yr going great I reckon ! Your family is sacrificing -living with yr family to get ahead ??!!Keep smashing that mortgage down and improve them a bit for better rents

 

Probably not in terms of improving value. Property is half decent. Old Gov type commission housing but the prev owner did extend one bedroom.

Granted it is a fairly decent location both distance towards CBD and the big IF it can one day gentrify.

 

One commentator I pay attention to (Konrad Bobilak / Investors Direct) believes HW/HH will have great growth in the next 1-2 years.

Then again, he does sell townhouses in that area.

FWIW I do believe the theory came before the sales though.

 

aint no-one got time for a 90 minute webinar

forwarded through the screenshots, here's his 8 top suburbs for anyone interested
epping
maidstone
frankstone nth
w footscray
cheltenham
b'meadows
taylors lakes
st albans
lalor


can't be bothered to scroll through anymore to see what he says after that - op if you'd like to provide a tldr that'd be cool

 

I agree on the top two but I would also add Bellfield ;-)

 

I would ride it out and have a plan to upgrade your PPOR.

 

@willister any update here? Im also looking at Melb for IP atm and waiting for the borders to open so I can visit these areas, HH and Balaclava is my target. What's going on with HH? seems very affordable?

 

Short version - Ex Olympic village & housing commission. Lower SE awaiting gentrification due to close to CBD location.
Balaclava very different demo as I have posted about previously. (Search forum approx 1 year ago). Think it may have been for @MTR Query.

 

@craigc which one would you prefer location wise St Kilda or Balaclava for a townhouse purchase?

 

Good point @Y-man sorry got my abbreviations wrong.

 

Nope. Hoping to somewhat ride it out doing a 10-15 year hold strategy, may or may not happen. FWIW, most like myself were attracted to the 14kms or so proximity to the CBD (is that even an advantage these days post COVID)? Looking back I didn't fully grasp the market of HW/HH/Reservoir. Had I placed money on any of the other two, I would have lost pretty much the same amount.

Pessimistic me says there probably isn't much more capital gains to be made in these areas even if you purchased at a relatively cheap time like now. For what I paid, I could have probably got two decent sized units in the SE of Melbourne and achieved probably double the income. At the time I just didn't grasp the concept of yields or bang for your buck.