Sell Melb or hang onto it re move to Qld ?

Discussion in 'Investment Strategy' started by DavidG, 23rd Aug, 2018.

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  1. DavidG

    DavidG Active Member

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    I live in Melbourne's Eastern suburbs and Im about to turn 58 yo , Ive been delt a blow re health and been out of work for 12 months and had to close my business . Hopefully I can work again soon but I'm at the stage I'm struggling with Melb's winters and I feel I need to move north to help improve my health .
    Ive had great $ growth here in this suburb and I'm on a 900 sq mt re developement block .

    I probally wont buy straight away in Qld I will rent for a while to see where I want to live .
    I'm concerned if I sell I may miss the further potential $ value in this property .
    I will be downsizing in value of property if I buy in Qld and investing the difference incase i cannot work again. I don't think I will be able to anywhere match the increasing value of Melb in my next purchase in Qld it will probally be in an outer suburb of Brisbane .

    Or the other option is I rent Melbourne out for several years and hopefully get more gains out of it when it comes time to sell , even thou the market here has flattened out or dropped a bit I feel it will go up again , its in high demand for Chinese buyers here .
    Saying that my Chinese next door neighbour has asked if I would be Interested in selling along with them within the next 12 months to a potential developer that would be able to get an extra townhouse on the 2 sites .
    I had one Real Estate agent tell me I would probally achieve another $100 k more from doing this but at the same time said not to sell my property due to it being in a high demand area .

    Cheers
     
  2. ChrisDim

    ChrisDim Well-Known Member

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    Whilst I have my immediate thoughts, I will not share because your situation needs careful and better informed consideration and that includes taking your personal circumstances into consideration (health, finances, lifestyle, dependants etc). BTW really sorry, about your health issue and losing your business. Heads up and keep going!

    If it was me, I would do my numbers properly... Are you good with EXCEL? there are some safe assumptions I would make (even though there is never any certainty - esp with what is happening in Canberra right now!).... for example you could assume that Melbourne is going into a period of slow to no growth and, actually properties may drop somewhat. Rents are likely to go up.

    Also, parts of QLD are seeing moderate growth from investor activity primarily... But then again QLD is a massive place... I would then see as many people as I could to hear their thoughts. Real estate agents for example to get more opinions about my property and what happens if I join forces with next doors... then I would speak to a few buyers advocates both in Melbourne (to hear what they think will happen with your property) and QLD (to understand what will happen there and what it will cost to get in and where). No one has a crystal ball so the more opinions you get the easier it will be to validate your assumptions and make an informed decision...

    That's what I would do... It needs a lot of running around and face to face with people....

    Best of luck David!
     
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  3. Whitecat

    Whitecat Well-Known Member

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    I'm the medium turn the general consensus is that Brisbane has more upside than Melbourne. Melbourne appears to be dropping Brisbane appears to be stable.
    If you need the money that is you can't afford to rent in Brisbane as well as hold it over the very long term to sell it for an even bigger price to a developer in 10 years or something then now overall is probably not such a bad time to make the switch.
     
  4. gman65

    gman65 Well-Known Member

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    In terms of your health issues, it sounds like Brisbane will treat you well..from May to Sept, it is about 22-25deg and very dry without any rain for weeks on end.

    That said, with climate change, summers can be tough right now, with 30+ the norm for weeks/months on end, with minimum temps unlikely to dip below 20 or so.

    So I guess weigh up all factors... Oh yeah, qld is one of the most beautiful places on Earth when you add it all up! Great for 1-2 hour road trips or week long adventures.
     
  5. DavidG

    DavidG Active Member

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    Thanks everyone :)

    So I just looked at some numbers , my area has droppped 4% this quarter but has had an annual growth of around 12 % and median house value of $1.3 mil but has a low return rental value % . I just looked at some possible Qld area's I would live inn re stat's , boy big difference , better rental return % but way lower growth in certain area's . Straight up I can see I could down size quite easily and amazed to see the difference since I lived there last 20 years ago . I don't need the cash just now , so I'm thinking it maybe wiser to hold onto Melb rent it out and make the move to Qld and rent there for a while .
    One factor is my house is 60 years old been renovated some 20 years ago , I know some things will come up in the future to be replaced like heating , air cond , HWs etc etc but I'm thinking it's still viable to upgrade those items seeing the property seems to be a good value asset .

    Sorry Im not good at Exel and yes thats good advise I will talk to more people .
    I'm single no dependants .
    Thanks
     
  6. Propertunity

    Propertunity Well-Known Member

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    If it were me (and it isn't, it's you), this is what I would do. You may even find the weather more acceptable in FNQ - Cairns etc.as you get older and less tolerant of the cold? Or even, dare I say it, SE Asia?
    Keeping Melbourne gives you options once you decide where you want to live. All the best David, sorry to hear about your health issues.........they have a habit of sneaking up on us all as we approach our 60's.
     
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  7. DavidG

    DavidG Active Member

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    Thanks for the replies .
    Ok I was just wondering around the outside of my house looking at the issues of the old house , I think I'm done and need to sell sometime in the near future , that's ok maybe I can team up with the chinnese neighbour and we sell to developers .

    Ok if thats the case I need to think about possible future Investments to keep up with Inflation as being a baby boomer I don't have enough super .
    Several thoughts - Sell Melb purchase 1- 2 low maitenance properties in Qld ?
    At least 1 to live inn and possibly rent while I travel abroad the other as Investment ?
    Thoughts ?? :)
     
  8. TAJ

    TAJ Well-Known Member

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    If possible DavidG I would look at a villa setup (2) whereby you reside in 1 and lease out the other. Make sure it is newly built which will provide low maintenance issues and less upkeep externally (small lawn). This way you get to keep a close eye on the property (your investment) while having more free time to enjoy life. This should be financially achievable for you if selling out of Melbourne.

    Good luck.
     
  9. Whitecat

    Whitecat Well-Known Member

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    Sounds ok but get an old one. If the toilet breaks call a plumber. Once the new one gets old you will have more issues as the quality might not be there. Also you are going to pay a premium for a newer one where there is less likelihood of adding value
     
  10. Mike A

    Mike A Well-Known Member

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    Health issues and getting towards 60. I would say enjoy life. Plenty of old guys and gals in vietnam, thailand, philippines and indonesia living and loving life. Maybe dont need to go that far but with health issues and not being able to work id start planning to enjoy things.
     
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  11. Gockie

    Gockie Life is good ☺️ Premium Member

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    I think once David sells out of Melbourne, he could buy a house in Queensland (far North Qld or even look at the Redlands part of Brisbane). Great climate.
    Living in SE Asia is absolutely possible too.
    With the rest of the funds, look at investing in shares. No maintenance issues.

    I think 1.3mill (give or take) isn't enough to live on in Australia for the long term (especially if we deduct 500k for a home) so living in SE Asia is possibly a better option in respect to finances and living costs. Not sure if David has much in the way of other savings (a low super balance was mentioned) so I've assumed he doesn't.
     
    Last edited: 25th Aug, 2018
  12. Codie

    Codie Well-Known Member

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    As the others have mentioned SE Asia, Buy something in Brisbane in case you would like to come back occasionally, put the other $700-$800k in dividend producing shares, go live in SE Asia/ Vietnam. Plenty of people I know living in Hanoi on $500au a week quite comfortably and you would be on a lot more than that :)
     
  13. Mike A

    Mike A Well-Known Member

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    i lived in saigon and in District 1 (which is the best of all the districts - the "tourist area" you can easily find a one bedroom for $400 AUD to $500 AUD per month. Fully furnished. If you want a little more luxury $1k AUD will get you something really nice.
     
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  14. DavidG

    DavidG Active Member

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    Thanks heaps for the replies .
    I love the idea of living in SE asia , I spent 5 months in Thailand 2016/17 , I love it down the SE of Thailand but wouldn't rule out other places either . That's my dream over & above Qld .I was all set to move over thinking if things didn't work out I could always come back to my line of work but that changed when I got hit with this health condition .
    I think my biggest fear is selling up moving over then for whatever reason coming back and finding my Investments stocks etc havn't kept up with bricks & mortar if I had to buy again, wouldn't be Melb . I do talk to other expats one in Particular sold up and put his $ Into Vanguard Eft's .
    I think the downsizing of value of property and buying something in Qld and Investing the rest is a good Idea that would at least give me something in bricks & mortar .
    Yes I think I could have around $700- 800 k to Invest as well as a cheaper Qld property . That should be more than enough for a SE asia lifestyle yes ?
    I think that's it I need to get the balls to sell Melb . :) There's only one thing I will miss about Melb and its the Alpine region in summer , I love my bushwalking and camping out in the Alpine region , I could just come back for that in summer !
     
  15. Codie

    Codie Well-Known Member

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    I guess that’s why being diversified into both a house and land in Brisbane middle ring along with income producing shares you are kind of hedging yourself against each, or go full bricks & mortar with 2x properties/ slightly less income if that’s what gives you sleep at night factor. If 1.3m was placed in Brisbane you should easily be able to see $65k Gross. - comfortable living over there :)
     
  16. DavidG

    DavidG Active Member

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    I thinks that's a good strategy , something I'm comfortable with . Would you know what suburbs in Brisbane would be a good start to look re returns and Investment ?