After someone to bounce ideas off / talk me through whether to sell or rent out a property we have. Sounds stupid - but I am having difficulty making this decision. Property paid 415k (plus stamps and legals would be 435k total) has not been rented (second home for 2.5 years) current value 550k (agents are conservative - we think its worth 600k) 1011sqm corner block. Already has a crossover. Can chop into 2 or 3 and retain front house. House is 5,2,2 80s brick. 60km from Melb 1.5km to train station 1km to town centre Rent has been appraised at 420-450. Rentals are in demand - the issue is finding quality. Do we sell now and move forward or do we hold?
Home owners tend to overestimate the value of their properties and agents tend to over quote as well, so knowing nothing else, I would be more likely to assume it's worth $550k or less. How far along your investment journey are you? What's your plan with investing? Without answering those questions, I don't think anyone one here can give you a qualified recommendation.
Shouldn't the decision be based on your strategy rather than the details of the property? What was your strategy buying the property? Have things changed? Do you have a plan with what you're going to do with the proceeds?
I think that is the problem. The plan, journey and end goal has been lost along the way. I don't have anyone that I can talk it through with.
there are a couple of comparables - across the road 540 - only 3 bed - would be a battleaxe chop, around the corner 580k (800sqm) and 600k same land size but further from town/station. In the new estate down the road brand new house on 400sqm gets 600. I guess the buyers value the house not the land content.
Grab your accountant and broker and have honest conversation around strategy/goal.. And if rent is covering the repayments and depending upon the overall strategy, I'll start to think why sell in market that is in buyers favour esp. for block with this kind of potential? Explore all options before pulling the trigger ...
What would you do with the proceeds if you sold? If you don't have a specific purpose for selling, it is usually preferable to retain (and in your case, rent out) property.
Selling is expensive game until you have identified another potential mkt/ property where you can use your selling proceeds to leverage your decision. If you haven’t identified yet, then simply hold. Land is a matter, property is something least concern.
I think putting the whole portfolio on the table and looking at the financial situation is a good start. Can brokers and accountants give this advice?
In their respective fields, yes. And for things they not able to, they should be able to steer you in right direction!.. And great that you are considering it. Good call!.
