NSW Northwest Sydney. Sell and pay down debt or keep?

Hey everyone,
I've got a question. I've got land that I'm gonna be building on in The Ponds, in the north west of Sydney.. My purchase price was 630k for house and land, and I recently got it valued at 820k prior to construction commencing. My land price was 398k. I was wondering if I should buy land in Box Hill, Marsden Park or Riverstone for 398k or lower or even Austral for 330k land (still prefer northwest over southwest), and sell the Ponds property for say 820k (a few agents reckon I could sell it pretty easy for 850k when built) and then take that money to pay down the next one down the road.. My only concern is that my property atm is about 800m to the new train line and about 400m to a very good school whereas Marsden Park and Box Hill would be like 4-5km to the new train line and not as "prestigious" (Yes, the Ponds is seen as the premium estate in the area...it's all the same to me lol) and not next to any sort of good schools although Marsden Park will have a couple of schools in a couple of years.

What numbers should I be looking at? Should I keep or sell and pay down debt?
I put down 10% of land price and paid 9k stamp duty so $30,900 sitting in there of my own equity, and then if I sell for 820 conservatively i'd have another 190k there minus 1.8% agent fees which is $14760. I've held the property for over a year as well which means 50% CGT.

so 190k-9k stamp duty-$14760(agent fees)-$15k (interest expenses while building)= 151,240...then x .5 (CGT)= $75620.. which would give me $75620 in my pocket, and then I would get taxed on an income of $145,620 assuming I'm on 70k/year.. so tax on that income would be $41,826..So I'd have say $33,794+75,620= $109,414 of profit I can take to the next build + my $39,900= $149,314..
Assuming my next build will cost me 630k all up for house and land, is it worth paying down say 140k of debt (minus new 9k stamp duty) by selling and going to one of these other suburbs?

other things to consider..
The Ponds property will be a dual income property where it's 3+1 so overall rent conservatively would be $900 (agents reckon closer to $1000/week). I can do this in the other suburbs too but would probably get $150 less rent/week.

I hope these numbers make sense (hope I've calculated right)..

So what does everyone think? Hold the ponds premium real estate with a larger 600-640k loan or sell down and go to a smaller loan? It's a tough one...

 

I still believe northwest still have room to grow, mainly due to the new train line. Once the train line completed, it will further activate the area, push up the rent and house price. That's what I observed when it happened to the Macquarie uni train line open years ago.
IMO, hold it until 2019 at least

 

Yeah which is why I'm thinking if I sell in the northwest I wanna buy back into the northwest for the same product in another suburb just 150-200k cheaper. Thoughts?

 

I think keep it due to proximity to train station.

Extract equity as soon as you can, although I think the market still has growth in it until and after the railway opens in 2019.

Poles and wires is happening which means the Rouse Hill hospital will likely get the go ahead before the next election.

http://www.dailytelegraph.com.au/ne...s/news-story/b108477a5fecda8e25ab5b914232267a

 

5 out of 5 votes so far have been to hold.. Interesting.. I wonder why? I know some people who build and sell every year and pay down debt and repeat the process and now have no debt..

Would living in it for 3-6 months while I decide on what to do change things because I wouldn't have to pay any CGT if I did that.

 

Couple of considerations:

1. Would you be able to keep buying in other states if you did not sell?
2. Do you have to pay CGT?
3. Would you further ahead if you sold and invested the proceeds in other states?

 

1. Yep I can still buy in other states and have already got one in Newport up in Brissy and I think next up will be outer suburbs Melbourne.. Should've reversed that order haha
2. If I sell immediately I guess I would unless I lived in it while I was making up my mind.. I am getting married in Jan so could be an option
3. Too much of a gamble imo. At least if I retire 150-200k of debt I'd be sweet with sitting on equity whereas now I'm sitting on a 640k loan instead of saying 460-500k. I wouldn't sell and not buy again in North west Sydney. I could use some of the funds to keep investing interstate.