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Darwin unit

Discussion in 'General Property Chat' started by annaw5599, 21st Aug, 2016.

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  1. annaw5599

    annaw5599 Active Member

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    as the market continues to drop in Darwin I'm unsure whether to hold out or sell. Anyone have predictions on how bad Darwin will get ?? I have a 2x2 apartment in the city. Purchased as a PPOR in early 2012 for $485000 - I'd say current value would be about that now. It's currently locked at 4.19% for another 18 months or so. Body corporate costs and rates are around $7000 a year (up significantly from when we purchased). Rented atm $590 a week. We didn't really mean to get into investing but it now interests me enough to jump on here... I'm just not sure whether we keep holding and hope there isn't even more doom and gloom to come or put it on the market to sell ... darwins population growth seems very flat and with all the construction of inner city dwellings when I was there in April still going on... I think massive oversupply is going to be an ongoing problem. I know most of you aren't across Darwin market much... but if anyone is ... Thoughts ?
     
  2. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Massive future oversupply combined with high strata and rates... I'd look to sell.
     
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  3. MTR

    MTR Well-Known Member Premium Member

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    Its the beginning of the downturn, sell cut your losses, sit tight and watch the market closely. It will be cheaper to rent.

    MTR:)
     
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  4. hammer

    hammer Well-Known Member

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    Tough call.
    You'd be very lucky to get your 485k back now.
    I suspect you may well be looking at 400k or even below. However, a slick agent may be able to help.

    There are lending restrictions in place from most lenders in the Darwin CBD, which makes it harder for any potential buyer to get finance.

    However there is some good news. It's almost certain that there will be a change of government coming in a week or two. One of their main policies is to greatly reduce stamp duty and reintroduce some sort of grant for first home buyers.

    If this happens, it will be your best opportunity to sell for a long while.

    Good luck with your decision!
     
  5. annaw5599

    annaw5599 Active Member

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    Tough call for sure ! Just lookong at costs and it's probably neutrally geared. One sold recently for $500000 in our complex in March this year - also 2 bedder... I hope it hasn't gone down $100000 since then ! Recent valuation was $480000.
     
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  6. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Ps. I think you might be lucky to be getting the rent you are receiving.... in 12 months it maybe lower...
     
  7. MsAli

    MsAli Well-Known Member Premium Member

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    Have you considered the break costs for the fixed rate?
     
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  8. hammer

    hammer Well-Known Member

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  9. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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  10. hammer

    hammer Well-Known Member

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  11. annaw5599

    annaw5599 Active Member

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    Saw that thanks ... Thinking will monitor for a while and then chat with our mate who owns Ray White up there ... see what his thoughts are .... It's furnished... which is why I think we have been lucky with tenants too and still getting very decent rent. Lots of transient people up there looking for somewhere furnished in the city for a year or so
     
  12. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    This is typical with OTP purchase that others need to factor into purchase decisions.

    Did you buy OTP or established?