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

Discussion in 'Where to Buy' started by Daz1979h, 24th Jun, 2015.

  1. Daz1979h

    Daz1979h New Member

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    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!
     
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  2. jafeica

    jafeica Well-Known Member

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    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.
     
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  3. D'Mo

    D'Mo Well-Known Member

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

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

    Biz Well-Known Member

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    I think you should stick to your industrial properties Dazz.
     
  5. Daz1979h

    Daz1979h New Member

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    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!?
     
  6. Leo2413

    Leo2413 Well-Known Member Premium Member

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    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.
     
  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    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.
     
  8. Daz1979h

    Daz1979h New Member

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

    WinDyz. Well-Known Member

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    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
     
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  10. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    ^ ^ 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?
     
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  11. WinDyz.

    WinDyz. Well-Known Member

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    Can't Agree more!
     
  12. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    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.
     
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  13. Mick C

    Mick C Well-Known Member

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    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
     
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  14. Daz1979h

    Daz1979h New Member

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    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.
     
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  15. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    this can be a response that may NOT be appropriate to personal circumstance

    much depends on where one is in terms of personal investment horizon, personal resources and risk profile.

    I dont like losing trail income to sales..............but there are times where the sale and rebalance of stock is an appropriate strategy, and I encourage same.


    ta
    rolf
     
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