I've posted on my Cairns house before, but at the start of the year said I would give it a year and re-evaluate. Paid 415k in 2007 Recent bank val 380 (awaiting a new one this week) Agent appraisal mid 400s Onthehouse 469k Probably sell for 420-430 on comparables, at best. 400 week rent, never vacant, but no increase in rent for years, and no real capacity Here are the figures from my 2013 tax return - essentially, it cost me $8644 to hold (before tax) 2014 figures will be worse due to repairs The figures from 2014 will be even worse because of loads of malicious damage, repair costs and an insurance increase to $6500 for the year ($2500 from today) Rates will go up as my land value doubled this year. There is nearly zero depreciation as its old. I'm in the highest tax bracket, and its 100% mine. Cons for selling: Missed capital growth opportunity in Cairns - rising market, improving fundamentals. Sales costs Big block (900m2) in a premium suburb; LMR block - draft changes allowing subdivision MIGHT ONE DAY allow 2x2 duplex, not now Good rental style house, should be low maintenance (except for a bad run this year) and broad appeal. Means I have to accept that I failed - this is a big one, actually. This was my first ever house. Pros: There is no capacity for significant rental increases, at least this year. Do better elsewhere: less risk (economy/unemployment is 9%/cyclones), less insurance, less rates, more capital growth potential, similar gross yield, better tax benefits esp. depreciation. It's getting shabby, especially the bathroom Any Capital Gains will be taxed at the highest marginal tax rate after discount anyway It may limit serviceability for future purposes, at least until the financial year end, or perhaps until I can produce 2 years of BAS/records ? Would ANYONE keep this?