Should I sell Brunswick West Apartment? (VIC)

Hi all,
I purchased a one bedroom apartment in Brunswick West as a first home buyer early last year (2020) for $355,000
It is an older style 70's apartment in a block of 6 apartments. The place has a small balcony and carpark on title. Body corporate fees are roughly $1400 per year.

I have ended up gutting the place and renovating. New bathroom, Kitchen, removed two door jams to create an open layout, floating floorboards and fresh paint. I did all the work myself spending around $10,000 on renovations.

I am already thinking of selling the property and moving out further to Dallas/ Meadow heights where houses are currently $450,000. (I wish I had done this to begin with as my ongoing work is now out that way and I would prefer more space).

I believe the Brunswick west apartment would easily sell for $380,000 having been renovated .

The bank has said they can loan me a maximum of $370,000 if the Brunswick west apartment is rented out (which is not enough to buy a $450,000 home in Dallas/ Meadow Heights. Hence why i am considering selling.

Prices are so cheap in Meadow heights/ Dallas at the moment and I'm worried they will go up a lot in the next 5 years. So wanting to buy now.

What are disadvantages to selling in such a short time? e.g 1.5 years after purchasing?
What do you suggest I do?

Many thanks
- Georgia

 

Not sure you'll sell it easily for 380 - after agent fees etc. your profit will be minimal.
However I don't know how much capital growth there is for your apartment in the next 2-3 years (unless it's particularly big, courtyard etc). It may also be tough to rent in the current market, and for some time, so selling for an upgrade could make sense.

What are your long term goals with the house in Dallas? To live in for a long time? If you're pretty handy and can renovate yourself, you could add value at low cost

 

Hi, Thanks for your reply .
I basically just want some peace. Dallas is very close to my work yet the main thing that is making me want to move/sell is the realising how difficult it can be getting things done with a body corporate.

I would definitely buy a house in Dallas/ Meadow heights/ Broad Meadows. Just wondering if its worth sticking out living in the apartment for a few years and enjoying the new renovations. I really believe that Dallas / Meadow heights/ Broad Meadows will significantly increase in price in the next few years. Do you have knowledge of these suburbs?
- Georgia

 

Hi, thanks for your reply. Do you think it is worth holding onto and renting it out once I have saved and built equity to buy a house? I owe $230,000 and in the future can earn $300 - 330 per week (excluding agent fees) Body corporate fees are around $1400.

 

I was able to renovate for $8000. I did most of the work.
I regret not having bought a house further out in the first place. I'm still trying to make the best of the situation. I do not mind living in the apartment for a few years.

 

I disagree, I don’t see much growth for these suburbs at all due to abundant land and industrial near by. Not for a few years anyway, it attracts a certain demographic and a lot of new builds.

All though yours is a unit, and a 1 bedder at that. Location wise it’s great and the fact you have renovated means you should have no problem renting it and holding on to it long term. Can you save a little extra and look at buy done the track closer to where you work?

 

Hey thanks so much for your response. Yes I believe if I'm patient I can hold on to it and hope it pays off in the long run from rental income. It just seems like such a long time before I will be able generate any income from it.

 

Hi, Thanks for your response. It is very reassuring. I was beginning to think that one bedroom apartments are a terrible investment. However, I am just starting out and $350,000 was really what I could afford. I could have stretched the loan to $450,000 and bought out in Meadow Heights/ Dallas as I said. But it's done now... So no point mulling over what could have been too much. There is always next time, that is likely to be 3 -5 years. I just hope the prices in Meadow Heights/ Dallas don't go up too much. Seems very cheap out there now.

Thanks again.