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VIC Should I sell in Seabrook

Discussion in 'Where to Buy' started by apsbrar, 28th Oct, 2015.

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  1. apsbrar

    apsbrar New Member

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    28th Oct, 2015
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    Melbourne
    I have an investment property in Seabrook (postcode 3028) for last 5 years and growth rate has been slow. Is it worth holding on to the property there for the long term (another 4-5 years) or should I sell and look for something elsewhere.
     
  2. Greyghost

    Greyghost Well-Known Member

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    What did you buy it for?
    What is it worth?
    How much do you owe?
    How is the cash flow?
    Have you considered exit and re-entry costs
    Have you considered any potential CGT implications?

    What is your strategy? Are you looking to build your portfolio further, do you need to sell this one to do so.

    Just a few questions off the dome..
     
    bdizzle likes this.
  3. Xenia

    Xenia Adelaide Property Manager Business Member

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    Location:
    4/136 The Parade Norwood, South Australia
    Only one person can answer that question :)
     
  4. apsbrar

    apsbrar New Member

    Joined:
    28th Oct, 2015
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    Location:
    Melbourne
    Bought for 365
    Worth around 420 according to real estate agent
    Owe around 200
    Cash flow is positive with interest only
    Property is in trust and has accumulated 25k loss, not sure if that could offset some of CGT

    Don't know the answer to last question, what's better to have more properties or only one with bigger price tag. More in portfolio means multiple ongoing costs. Need some education :)
     
  5. Investing101

    Investing101 Well-Known Member

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    vote 1, hold it long term, buy more.
     
  6. Greyghost

    Greyghost Well-Known Member

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    Cryptic....
     
  7. Investing101

    Investing101 Well-Known Member

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    Too many little investments does mean more chance of 1 going wrong somehow, i.e no tenants for a while but you hedge your bets by having others to cover it went it happens.
    All your eggs in 1 basket means easy management, and prob a better quality home, and better chance of better tenants but if something goes wrong. i.e cant get tenants for a while then your out of pocket alot more.
    it really is a personal choice as to what you feel comfortable with and find your happy medium.

    vote again: hold it, get more. :D
     
  8. Greyghost

    Greyghost Well-Known Member

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    Location:
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    365 + costs = say 380
    420 - selling = 410
    30k profit.. Roughly...
    Even if it was say 40 or 45, I would hold it, especially if it's cf neutral..
    I would hold. Melb cycle is still moving. Plus might be some residual growth in 2016 still.
    You have equity in it..
    420 x 80% = 336 - 200 = 136 deposit power.

    Then it comes down to your servicing for the next place..

    I think you should stick to your guns and go again if you can.
     
  9. Spiderman

    Spiderman Well-Known Member

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    Location:
    Vic
    Seabrook is next door to higher priced suburbs eg Point Cook & Williams Landing so may be worth holding. Has less of a stigma than Laverton. Transport may be an issue - people complain about freeway access & train crowding in area.
     
  10. Hodge

    Hodge Well-Known Member

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    Thanks to point cook getting in and out of Seabrook is a nightmare. I'd sell and reinvest in a better suburb.
     
  11. apsbrar

    apsbrar New Member

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    It being close to higher priced suburbs was the reason that I invested in Seabrook, thinking that growth will be at same rate as surrounding suburbs but for some reason Seabrook prices are almost stagnant.
     
  12. Soul

    Soul Well-Known Member

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    Location:
    Melbourne
    It can be challenging, but "nightmare" is overstated. Point cook road can be busy, but wait for the aircraft railway crossing fix. i do not know when will it happen, but locals are raising the issue.
    The traffic issue in peak hours is no different to other parts of Melbourne. You have access to Aircraft station, cycle path and buses to Laverton or Williams Landing. Recent activity indicates growth is picking up.

    Seabrook has two parts and the newish part is close to Sanctuary lakes and is much more affordable than its neighbouring suburbs. OC are moving in the area.

    With respect to growth, a house on Clarendon st was sold for 465K in late 2012. After renovated bathrooms and paint, it fetched 690k last month.