VIC Advice needed on selling neutral IP in Pakenham, VIC

Discussion in 'Where to Buy' started by srirang, 1st Oct, 2015.

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  1. srirang

    srirang Well-Known Member

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    19th Jun, 2015
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    Melbourne
    Hi all,

    Our IP in Pakenham was purchased in 2008 for $300k.

    It was valued at $400k in 2013 and now between $350k-$370k.

    We owe $313k on it, but it is almost neutral. Last year, pre-tax it cost us $200 to keep. After depreciation it was slightly positive.

    Question is, do we sell it as it hasn't done anything in the last 7 years.

    The house is comparable to other properties in the area and has never been vacant. The surrounding area is pretty good and there is a bus stop, child care, shopping centre, lake and walking trails all within a few minutes walk.

    If we sold it, we would use any funds left over to offset our PPoR loan. Would appreciate your comments and inputs.
     
  2. SK Investments

    SK Investments Well-Known Member

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    I'd wait it out, it will go up eventually. More than likely immediately after you sell!
    It sounds like a good property to hold.
     
    Propertunity likes this.
  3. wylie

    wylie Moderator Staff Member

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    I would hold. The costs to sell and possibly buy back in after you reduce some PPOR were enough reason for me to hold when we wanted to pay off our PPOR. Our loan broker talked some sense into me. It was so tempting but I resisted. Your loan will not increase but your rent will.
     
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  4. Pixie

    Pixie Active Member

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    I have similar situation as u.. and I would hold ....
     
  5. srirang

    srirang Well-Known Member

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    Thanks everyone. Its very validating for us as that is exactly what we were thinking. Appreciate the quick responses.

    Thank you.
     
  6. MaddyG

    MaddyG Well-Known Member

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    Did you end up holding? I hope you did... Doing very well in Pakenham at the moment :)
     
  7. Otie

    Otie Well-Known Member

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    Yes I’d imagine minimum would be 475k val. Racecourse rd stuff is bringing 500-550k on the 700m blocks. Insane
     
  8. private_number

    private_number Well-Known Member

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    Without knowing your exact numbers, to me it sounds like this property is running at a loss.

    On top of that, in just under 10 years the value has only gone up by 50k (worst case), minus expenses and CGT

    I wouldn't be comfortable advising you on such a decision without knowing exact numbers (holding costs, maintenance, mortgage repayments, rental income etc) and of course knowing the exact location and characteristics of the property. But without knowing the above, I would sell. In fact, I would of sold in 2015 if not a tad earlier.
     
  9. srirang

    srirang Well-Known Member

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    Melbourne
    Hi there,

    Sorry, I've been off the forum for a while. We ended up keeping both the IPs in Pakenham and they're doing well. They don't cost us anything to hold and put a few $$ back in our pocket every week.
     
    Otie likes this.
  10. Otie

    Otie Well-Known Member

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    IM glad! Pakenham is doing well and there’s is a lot planned for officer/cardina rd precinct
    Even a propoesed hospital I think