Sell unit in Sydney to buy multiple properties in Brissy or Adelaide?

Hi People,
Just wandering everyone's thoughts.
I have a unit that has done very well for me over the years and I'm now thinking as Sydney is approaching the top of its cycle would it be a good idea to sell possibly for top dollar and move my money to a recovering market like Brissy or Adelaide and buy multiple properties?
All these properties in turn would be positively geared because of the big deposits. Good or bad idea??
Thanks for the help!

 

Rather than selling, I'd release equity in the Sydney unit to a level you are comfortable with and use that money as deposits on next IP's.

 

I'm in the EXACT same predicament & would also love some advice

Also, if selling would you consider doing it WITHOUT a REA?

 

I think you should stick to your industrial properties Dazz.

 

I have released a fair bit of equity already,but thought with the sale I could possibly squeeze some more cash out to invest somewhere else.
No point if you have your money sitting in a flat market when it could be working for you somewhere else! But when will Sydney flatten out that is the million dollar question!?

 

Overall release equity, rather than sell. Selling costs are too high and you wont be able to squeeze out THAT much more anyway in many cases.

 

There's decent buys in Adelaide at $250K.
Assuming you get some coin from your unit, and are financially capable of doing 90% LVR loans, that could put you in a nice handful of places, all of which paying for themselves.

 

Yeah true there are a lot of other costs involved that you have to think about. Cheers Leo

 

Don't ever sell... only release your equity out. Capital Gain Tax, and agent fees will eat almost all your gain.

If You're holding it for a long term, then it shouldn't be a problem

 

^ ^ this. Always keep an investment that is a proven performer.

Never selling also covers you against making a decision that turns out to be wrong. i.e. what if Sydney continues on its upward trajectory and you miss out on additional growth you are guessing won't be there? Worse still, what if the new purchases in Adelaide &/or Brisbane do not perform as you expect?

 

Can't Agree more!

 

My thoughts align with those of others.

I would ask your broker if you're able to draw further equity, and if so, how much. And if so, how much can you service in terms of new borrowings for more property.

Selling can make sense if its necessary to liberate capital, but I wouldn't have it at the top of my list.

Plus, "over the years" suggests you've owned the place a while. I would guess it'd be close to cashflow neutral, if not positive. So you'd be killing an income stream and sacrificing some equity through sales costs.

 

Get a few Val done to see which one has to highest vale for equity
+ search your Sydney property if it still has any more growth potential

 

Yeah I think there may be a little bit more growth in Sydney. I probably should just keep it and keep drawing equity. Thanks for the replys guys very helpful.

 

Hey D.T. Can I ask you your thoughts on the development in Port Adelaide and if it will affect surrounding suburbs? We are looking at Rosewater and Valley View areas at the moment.

 

@Daz1979h did you end up selling?