Ferny hills and Thornbury

Hi All,

I’ve been reading and digesting all the great info available in Property Chat for a couple of years now.

My portfolio consists of two properties so far:

- 30 year old 2 bedroom apartment in a block of nine in Thornbury. Bought it for 505k in October 2017, rents for 390 a week. Estimated value now: 520k. P&I loan @2.18%

- 30 year old house in Ferny Hills bought in January 2021 for 650 k, rents for 500 a week.
P&I loan @2.85%

I’m currently saving for my next property. However, I can’t help thinking that offloading the Thornbury apartment might be a good idea as its growth is limited.

My next property will likely be a terrace house in Footscray, Seddon or Yarraville in Melbourne.

I have no issues with my borrowing power and the holding cost of the apartment is 2k a year.

Selling the apartment in Thornbury would let me buy my next property now. Otherwise I’d have to wait 7/8 months.

My goal is grow my asset base as much as I can but I don’t want any dud in my portfolio.

Can you please provide your insights on this?

thanks heaps

 

Just adding to to the above I have 120k in savings at the moment and the LVR for both properties is around 80%.

 

Yeah I’d say Ferny Hills should be a good keep if the house is solid without structural issues. But interest seems high at 2.85? Fixed or Variable? Which bank if I may ask...

Yeah, I’d offload that Thornbury apartment. Without seeing details, I’d almost certain it will be a dud lol

I hope that terrace house in Melbourne will be bought as PPOR. Then rent it out if you want in the future to save CGT, make use of the 6 year rule. Yeah, I think some good value in those 3 suburbs you mentioned, should do well. Sell and buy now, just my opinion

 

Thanks for your response.

The apartment was built in 1970 and is in a small block.

The 2.85% is variable interest at 80%. Is that high?

 

Sounds like it’s not the worst one for Thornbury apartment.

Why not fix it at lower? Don’t think interest rate will jump a lot higher within 2 years.

Just would like to add, if you have the skills and time, get something that you can add value yourself while you stay in it as PPOR. Then get the bank to revalue higher, refinance and go for another IP.