VIC Advice needed on selling neutral IP in Pakenham, VIC

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.

 

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.

 

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

 

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

Thank you.

 

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

 

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

 

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.

 

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.

 

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

 

Reviewing Realcommerical earlier today and have see these two sites advertised for sale;

124 McMullen Road:
124 McMullen Road, Officer, Vic 3809 - Land/Development for Sale
250 Residential lots planned

46 & 50 Bayview Rd;
46&50 Bayview Rd, and 415 Princes Highway, Officer, Vic 3809 - Land/Development for Sale
219 Residential lots planned

Both are STCA at the moment but if developed potential to increase the activity in the Officer area. I wonder if it'll drive an increase in commercial shops and activity in the area...

Does anyone have thoughts on this?

 

Officer is planned to be the new business and retail hub of Cardina

 

Interesting! Thanks @Otie
Do you have any saved articles which detail the predicted expansion? If not all good, I'll investigate as well

 

I don't have it but I read the plan on the council website. Officer Precinct Structure Plan - Cardinia Shire Council