QLD Is now a good time to sell south Brisbane IP?

Discussion in 'Where to Buy' started by missing puzzle 101, 14th Sep, 2021.

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  1. missing puzzle 101

    missing puzzle 101 New Member

    Joined:
    14th Sep, 2021
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    Location:
    NSW
    I bought this OTP investment property in 2015 (a big mistake:confused:).
    Price: 700K;
    IP: two beds + two baths + 1 car space;
    Weekly rent: 480
    Monthly loan repayment: 900
    Monthly strata + council + water: 900

    Next to the window, a new residential project was aimed to be complete next year. The construction is in itself a noisy, dusty activity, so our building has been affected. My weekly rent dropped by 14% this year. I am really not sure about the south Brisbane property because there are so many new residential buildings.

    Referring to the selling records of other units. It is not a good time to sell as I will carry capital loss most likely. The potential risk is that the selling price will keep falling as the new unit buildings are oversupplied. The current value is around 580k.

    Does anyone have some experience or good advice to share with me? Thank you in advance.
     
  2. Hamish84

    Hamish84 Well-Known Member

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    Location:
    Melbourne,Vic
    You sure about this?
     
  3. missing puzzle 101

    missing puzzle 101 New Member

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    Location:
    NSW
    I calculated again, it should be around 620 per month.
     
  4. Closet

    Closet Well-Known Member

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    If
    Why not wait until the construction has finished and see what conditions are like?. Buyers are picky so selling with building going on nearby may compound your losses. Rising house prices may also lead to buyers moving choices to townhouses and units, if you can always better to not crystallize your losses but not advice as don't know your circumstances or location of property.
     
  5. missing puzzle 101

    missing puzzle 101 New Member

    Joined:
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    Location:
    NSW
    Thank you Closet for your reply.

    The location of the South Brisbane property is Hope St:
    upload_2021-9-15_7-34-4.png

    I have another property in NSW, which is a one-bed unit:
    Purchase price: 670k; Current value: pretty much the same 670k;
    Location: close to school and public transport;
    Rent: 420 per week
    monthly strata + council + water: 480
    monthly loan repayment: 2000 (interest and principal)
    The annual loss is around $7960 for tax deduction purposes.

    I don't have extra borrowing capacity. If I would like to buy additional property, I have to sell one of them or both of them. I am looking for an investment property with a better return.
     
  6. Gockie

    Gockie Life is good ☺️ Premium Member

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    Location:
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    I would sell potentially both. Buy a freestanding house with land. Developers will always build more units keeping the capital gain lower. Of course, houses will be built too, but they'll be further away and/or on smaller blocks of land. Land appreciates.
     
    Never giveup likes this.
  7. missing puzzle 101

    missing puzzle 101 New Member

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    Location:
    NSW
    That is true Gockie. Thank you.