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VIC Advice needed on selling neutral IP in Pakenham, VIC

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

  1. srirang

    srirang Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    123
    Location:
    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

    Joined:
    1st Jul, 2015
    Posts:
    174
    Location:
    Wherever the wind takes me, currently Brisbane
    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

    Joined:
    18th Jun, 2015
    Posts:
    2,931
    Location:
    Brisbane
    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.
     
    Propertunity likes this.
  4. Pixie

    Pixie Active Member

    Joined:
    27th Jun, 2015
    Posts:
    28
    Location:
    Vic & NSW
    I have similar situation as u.. and I would hold ....
     
  5. srirang

    srirang Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    123
    Location:
    Melbourne
    Thanks everyone. Its very validating for us as that is exactly what we were thinking. Appreciate the quick responses.

    Thank you.