Sell the apartment or not?

Discussion in 'Property Experts' started by daisy01, 6th Jan, 2017.

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Should we sell?

  1. Yes

    55.6%
  2. No

    44.4%
  1. The Y-man

    The Y-man Moderator Staff Member

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    Going by the numbers, the apartment is running cf+ by about $5k per annum.

    Will it change with the alleged glut of new apartments? Maybe.

    One of the reasons we sold out of our cbd 1BR last year.

    The Y-man
     
  2. TaylorChang

    TaylorChang Well-Known Member

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    strata/body corporate will eat the profit over time, especially high rise apartment.

    I was the in the similar situation before, I make profit but I get out because I think the growth is very restrictive.

    Time is very important, don't waste your precise time on the limited growth asset.
     
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  3. melbournian

    melbournian Well-Known Member

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    worst case go and do short term leasing
    if it is a dog box small apartmen the growth prospect are definitely limited - if it is a larger apartment, the leasing prospects are much better as well as growth. There are markets within markets in the melbourne apartment market. Otherwise how would those port melbourne, south yarra, south melbourne apartments all sell in the millions.

    I have friend who owns 2 X 2 bedroom apartment CBD bought in early 2000s fully paid off making around 100K net a year (from short term leasing).
     
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  4. daisy01

    daisy01 Member

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    @TaylorChang and @The Y-man we are worried about oversupply too, but god knows what will happen next year o.o

    @melbournian what is short term leasing? Is it like air bnb?

    @wylie I thought - if we sell- since we only owe 268k on the mortgage, let's say the apartment is sold at 340k, that means we give the bank 268k, leaving us with 72k and we prob use those for selling fees etc, still end up with roughly 60k ish? And we can use that as a deposit to purchase the new property. Am I calculating it incorrectly?
     
    Last edited: 7th Jan, 2017
  5. wylie

    wylie Moderator Staff Member

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    I picked up the equity figure from the above post. But if you have more, and you think there might be an oversupply, that is a different thing. I still don't know the market or whether a one bedroom is not the best thing to hold long term.
     
  6. dabbler

    dabbler Well-Known Member

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    In your position I would sell the unit as no CG tax.

    Buy house, when house has made decent CG, then you can draw that for an IP if your position has improved if you still want this, you may even get your same unit much cheaper if there is an over supply.

    Keep in mind it is easy for all of us, as we do not have to live with the financial decisions, one way or the other, so make sure the both of you are happy, not you both just follow anything we all say.
     
    The Y-man, wylie, Joynz and 1 other person like this.
  7. Whitecat

    Whitecat Well-Known Member

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    If it turns out that you cannot find a broker that you will allow you to hold it I would not be too worried about getting rid of it I think the capital is best put into a house I don't see one bedroom apartments in Melbourne growing very much in the short to medium term however houses should remain fairly stable
     
  8. Whitecat

    Whitecat Well-Known Member

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    This needs to be in a seperate thread. That's massive income
     
  9. Gockie

    Gockie Be the change you want to see in the world Premium Member

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    I won't give the specific details of my own numbers publically but 2x 1 bedders in or near Sydney will pull in the equivalent to my own income.
     
  10. daisy01

    daisy01 Member

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    Interesting how the vote is a draw so far. Thank you everyone who have voted. I have appointment with the bank this Friday and also in discussion with a broker to see what our options are. We also have our accountant friend helping us looking at the numbers. Will update you guys on what happens next :)
     
  11. Pamela Palmqvist

    Pamela Palmqvist Active Member

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    Maybe try and get a favourable electronic valuation to extract the equity? ANZ is good for this.
     
  12. daisy01

    daisy01 Member

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    I tried free electronic valuation from ANZ, it said $455,000 - $480,000. Which I think is very high and almost doesn't make sense.
    We're currently waiting for valuation and we'll see what the result is... (the valuer just came in today).
     
  13. melbournian

    melbournian Well-Known Member

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    Yes airbnb stayz etc. as much as anyones wants to say anything one post online for apartment in Melbourne or surrounding suburbs in even gumtree for short term leasing can get 30-40 enquiries in a day in Melbourne. COmpared to outer suburbs like point cook, preston where you maye get 1-4 enquiries a day etc

    having extra 1-2K a month net don't see what the downside to this it can have higher borrowing capacity but yes there is limited to no capital gain.
     
  14. daisy01

    daisy01 Member

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    Received the valuation result, it's $370k... which I think is not bad at all. Also saw the unfurnished rent price $400 in the valuation. We're starting to think to rent it out for now, a friend advised to do airbnb as well, he said it's better for 1 bedroom apartment.