sell or rent out

We have a villa in an area with good schools in Sydney north shore. Should we sell in this upswing market or continue to rent out? The rent isn't very good and it has its headaches.

 

The 'Sydney Market' needs more listings, the more people that list their properties the better. So I'd suggest it's a good time to sell.

 

Although I believe I'm a good person, I don't intend to help the 'Sydney Market'

 

What will you do with the money? Does that get you toward your goals?

 

Ha ha the Sydney market is like an old man in convertible Ferrari. no one needs or wants to give any sympathy

 

people are paying crazy money at moment so very tempting. Though momentum seems to be pushing hard so could easily see another 10% into next year. Plus who's to say rents won't jump making keeping it more attractive

 

Bugger, you saw right through my sarcasm

 

I'd put it into offset or some liquid asset like ETF, just for the rainy days.

 

Theres no right or wrong, but a few things you might want to think about. Offset is cash. So no growth but liquid and great for emergencies. Etfs probably have lower leverage than property.

Are you at a stage when you need the leveraged growth? Or do you already have enough other assets that you want more diversification and dont really need the leveraged growth? Or will you want to borrow more in the future for a different property?

 

You, encouraging sales in Sydney? Never!

 

I think I need the leveraged growth. However, I also think the property market is overheating and maybe it's better to sell before the whole thing goes sour and also to get rid of the renting headaches. At the beginning of the pandemic, the experts said we are heading for a downturn, yet it has been completely opposite. Now they said it will increase 20% next year. That makes me wonder.

 

If you sell now what will you do with the money, and if you don't sell now when would you sell?

With a general vibe of ridiculous prices, listing scarcity, general fomo, a seemingly overheated market and holding headaches, its hard to think of a reason not to sell.

 

Why isn't the rent "very good" ?
What "headaches" do you think you have ?
Does the property need a reno ?

Otherwise, not enough info....
Equity, or funds in offset, profit if you do sell, plan for funds or increased borrowing capacity ?

Even if the market "crashes" it will probably only lose a year or two's gains before climbing to new heights after a year of two, so if you've owned for 2 or more years there's not much point in selling (unless you have a new opportunity too good to miss)