QLD Cut losses and sell logan Property ??

Hi Guys, just after some advice on a property i bought in Waterford West, Logan back in April 2016.
Its a 4x2x2 on 600m block 9 years old. I Paid 350K on 90% LVR, current value would be lucky to be 370K and I owe 315K. The 380 P/W rent covers the Loan and expenses.

I wish I did't buy it now and put the money into Western suburbs of Melbourne. My thoughts are that I'm not going to see the growth that I Envisioned when I got the place. Which will stop me being able to grow my portfolio. It might stay in the low to mid 300's for 10 years!

Should I sell cut my losses and put the money into an area that will perform better. Or do people think Waterford west, Logan will go up?? Just seems there is high crime rates atm that prob will not change, and a lot of new estate going up and It's Logan. Or will the selling fee's etc put me even further behind? any advice will be appreciated.

Cheers

 

What was the reason you purchased in the first place?

It's been 15months, not really that long a timeframe for investment.

Yield is reasonable, not costing you to hold...

 

What is the opportunity cost of holding it?

Is it killing your serviceability or tying up your deposit etc

 

I would be hesitant to sell it atm (entry/exit costs) and its not costing you much. If you can just keep it and purchase another property.

 

What has changed in 15 months? Is this a delayed buyer's remorse as you seen other people seem to be doing better with their purchases?

 

Can I buy your place now on your expectation above? I'll pay you 10k today and balance of 340k in 2027? I pay for your solicitor fees to have the contract/condition drawn up as well.

 

It's not a lottery ticket, you have still made $20k in a year on the capital in a year. Based on your 10% deposit of $35k, that's 57% return on your cash.

If you sell, you will burn through that profit in selling costs, marketing, legals, exit fees and CGT.

Property is a long term investment not a short term speculative investment.

 

Keep it.
Come back to this thread in 3-5 years and see if you still feel the same way..

 

I am struggling to see where the aforementioned losses are which need to be cut?

 

People who bought in Melbourne in 2010 were likely quite disappointed with their investments by the end of 2011. The market dropped by 10%. Those who held their investments have seen them almost double over the next 6 years.

Logan hasn't done badly over the last year, it just hasn't done as well as the previous years. Selling in Logan to relocate to Western Melbourne is probably a mistake as Western Melbourne has had several years of huge growth, there's plenty to indicate that the growth won't be as good over the next few years (I think there'll be some growth, but probably not as good as previous years).

Property is a long term investment. Getting cold feet after 18 months isn't going to get good results.

 

Have you no shame man.

 

Perfectly sound investment. Property is long-term. Re-visit in 10 years.

 

I see a shiny gold tooth from a dead body

 

His name won't be RetireRich otherwise!

 

Whatever it takes to 'retire rich'.

 

You just beat me to it!

 

cos it didn't double in 2 years, the market should be more efficient by now, property used to double every 10 years, then it 7 years it should be 2 years by now

 

Exactly this.

I'm sure after 10 years of holding the property you'll be well ahead.

The real question is the opportunity cost of tying up your funds and serviceability in this property.
Do you think you could identify better opportunities in better markets for a higher and better return?

You'll have to weigh this up VS leaving your funds invested in Waterford West.

 

Dump it and go to Werribee in Melbourne.

 

I'm not sure your expectations are aligned with the reality of the property market.