SA DAVOREN PARK ADELAIDE advice please

Thanks DT. When you are constantly in the face of negative views in the paper, news, property experts, etc etc etc, hard to see what's really going on. Appreciate all the honestly peeps, good to have a site that sticks to facts.

 

If you are not losing money, why sell? If you sell and make a loss, can you make the same or more gain than the current one? You may or may not. I sold my first IP because I couldn't hold due to high interest rate and low wage That was a good decision when looking back. If it was a set and forget, and I don't have to dip into my pocket, I will just keep it. Now, do you think your tenants will renew?

 

Not sure if my tenants will renew. Even if it's $15 less a week with new tenants it's ok, as long as the new tenants are better to have in the long run. Speaking to my financial/property/mentor today. Said its a really tuff choice, believes I should keep, but if im concerned about the economic outlook then take a loss now if it improves your overall scenario.

 

I guess it's really now up to you. Your situation may be different from your mentor and everyone else. Whatever it is, power to you.

 

Cheers larry

 

I agree with your mentor and is similar to what i said previously.

Was this your first property? Where to for future purchases?

 

You also gave great advice.

This was my 3rd purchase. I started in Melbourne Essendon. Large block redevelopment potential of perhaps 3 townhouses as my architect adviced. Werribee, subdivided and built another unit to the rear. Toowoomba few years back. I was going to develope Essendon block but thought I'd wait and pay down more debt first.
I'm not sure I want anymore property once I develope, if I pay down some debt, sell one off, I'll have enough income to replace my current wage. But that's some years away.
If I was still investing it's hard to go past Brisbane and Adelaide for good returns. Yourself?

 

Ex PPOR in Perth that is now a rental, several rentals scattered around Playford Council SA including a development that is almost finished, one in southern suburbs of Adel and a couple in Canberra.

A couple of the Playford ones are cashflow positive rentals on developable blocks, so just like with your Dav Park one, I'm happy to collect cash from them til one day they get bulldozed.

Still looking for more though, throughout Adelaide due to the returns available which is a bit simpler being local.

 

It's great that your adding value. You get to a point land tax in one state eats your profits, excellent diversification. I've never looked at Canberra I must say.

 

No issues with land tax - you buy up to threshold in your name, up to threshold in spouses name, then up to threshold in trust1, trust2, etc

 

I would probably hold if I were you.

Everyone has to live somewhere and not all tenants are feral.

My cousin has had a house in Davoren Park, peachey road ) for 5 years and has had the same tenants the whole time and it is an old house.

If yours is new you shouldn't have too much trouble finding someone decent to rent it

 

It's really hard to answer such a question should I sell my Davoren Park house. Everybody is different and its hard to know what each others strategy is. Personally I am selling my house in Davoren Park but that's because I want a deposit for a house for my family. I have been renting or at Mum/Dad for the past 3 years. Otherwise I wouldn't sell.

 

Thanks guys, it's been great to hear everyone's thoughts to help with the decision process. I can say I am leaning towards keeping it, I am hoping the area improves over the years though, and that I can still find good tenants.

 

What did you end up doing with this one @Barny?

 

Hey DT, currently still renting, fixed the issue which was an easy fix. And agent did well, gave him the benefit of the doubt and turned out OK, so far. I'll use your contact from now on to make sure in the future too.
Selling Toowoomba house at the moment. Might sell this one once lease is up in a few months. Need to go over and see how cash flow it really is with all the expenses last year.
Everyone has a lemon in their portfolio, this is my lemon. At least it's cashflow positive/Neutral.

Cheers

 

The Holden closure is overblown - layoffs started yeRs ago anyway . Plenty of money being spent at the RAAF base and on infrastructure up there.

 

A lot of DP and Smithfield is - houses are being renovated or demolished to make way for new stock it's all part of playford alive (renewal section).

 

As long as it's cash flow positive I'm fine with holding it. I'm finding most of the cash flow is eaten up in the previous year by many additional call out maintenance fees. If I sell its at a loss from agent fees etc, so probably better to hold for now. I think. I still can't see any improvent in this suburb short term.