Apartment in Melbourne - To Sell or to Rent Out

Discussion in 'The Buying & Selling Process' started by Vee2vee, 29th Nov, 2016.

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  1. Vee2vee

    Vee2vee Member

    Joined:
    30th Sep, 2015
    Posts:
    5
    Location:
    Melbourne
    Hi. I have been reading the posts here and everyone is great in sharing their knowledge and experience.

    I have a ground floor apartment (PPOR) in inner north Melbourne for 5 years and am pondering if I should sell or rent it out. The sale prices of apartment around me were not that great, ie making a loss. I spoke to an agent who is familiar with my area, made a rough market appraisal of my apartment, around 15% below my purchase price. In addition, more apartments are building in my area, which I have a concern on the potential impact of my PPOR.

    I thought of turning it into an IP but I was told by a broker to get it offload to prevent further loss in the future. I am not urgent to sell it off but this is always in the back of my mind on how bad my purchase decision was. I know I had bought it too high few years ago, OTP. A lesson learnt. Now I want to move on and make the right next move, hence seeking your kind thoughts.

    Many Thanks
     
  2. Do Androids Dream

    Do Androids Dream Well-Known Member

    Joined:
    6th Jul, 2015
    Posts:
    124
    Location:
    Sydney
    Hi Vee2vee, and welcome! :D

    It's a little tricky to answer your question without knowing some more information...

    Would you be able to share specifics like:
    Purchase price? Recent valuation?
    How much the apartment is costing you to hold?
    Have you calculated how much rent you could potentially bring in and any out of pocket expenses?

    This forum may be able to help you with some more information but general thoughts would be to keep or rent out - provided it is not costing you too much money and/or preventing you from achieving other goals you may have :)
     
  3. Alfiesausagedog

    Alfiesausagedog Well-Known Member

    Joined:
    16th Sep, 2016
    Posts:
    59
    Location:
    Brisbane
    Definitely look at vacancy rates for your area as well. Being so close to the CBD I'd expect them to be low, however if there's new stock coming this may have an effect.

    You mentioned it's your PPOR, assuming you hold the property I'd be interested to know how long you plan on living in the apartment.
     
  4. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,440
    Location:
    Melbourne
    @Vee2vee

    What will you do if you rent it out?
    Will you buy somewhere else?
    Will you yourselves rent?

    The Y-man
     
  5. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,380
    Location:
    Qld
    If you are happy to continue living there, why go to the expense of selling? If you sell and then buy another PPOR you have to factor in all expenses.

    Unlike mining towns, there will always be people looking to rent in the inner city. At worst you may have to accept a lower rental if you ever turn it into an IP and there are a lot available.

    Unless there are problems with the location of the unit block, or you are in an undesirable location within the block, it may be worth hanging on to.
    Marg
     
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