QLD Should I sell my Bracken Ridge property?

Anyone familiar with Bracken Ridge QLD?

Change of circumstance at home at the moment so having a good hard look at the finances and everything is on the table.

We bought a small 3 bed in Bracken Ridge in October 2015.

We're in Melbourne and did a remote renno on it.

I've crunched the numbers, it costs us around $2k per year to hold.

In hindsight, it's not one I would buy again, we got caught up in the excitement after buying in Everton Park just before this one and had funds ready to move again, this looked like a bargain but we over spent on the renno.

If we sell now we'd likely break even and get back what we've put in but nothing more, the upside is no holding costs and potential for vacancies or maintenance, the downside is no potential for CG as the assets gone.

Capital growth wise, it went up a good bit just after the renno, mainly due to the renno then sat sat flat the next 3 years and hasn't really moved being a small house in a street of big houses, I'm not sure how much upside there is.

If we're losing $2k per year I'm wondering whether the potential for CG from hereon in is worth the risk of holding a property that may not perform. We have everything at P&I now so I'm thinking although we'd come out evens with no injection of equity to put int the bank at least what we'd save on the principle component I could redirect into tone of the other properties to pay that down quicker.

Any one got any thoughts on Bracken Ridge at the moment and can offer some insights?

It's on Capistrano Street.

Cheers.

 

Personally would hold as the holding costs are low and Brisbane appears to just keep slowly moving forward

Not sure where else you would want to put your money right now

I understand not having the capital growth you wanted is disheartening as I have also felt but maybe focus on paying down the debt to get it positively geared or closer to breakeven

I think there’s plenty of people who have jumped into that area after 2015 who are more then happy with their investment so maybe your in a better position then you think

 

I'm waiting for a call back from a recommended agent in the area, I'll get some appraisals done then do some number crunching.

My gut feel at the moment is that it's a zero sum game holding on to it, which means any potential risk of a large maintenance bill or extended vacancy would tip the balance to the negative.

I'll work out what percentage gain year on year it would need from hereon in to be worthwhile to keep it, if it doesn't stack up, then may as well chop it.

Any thoughts on the areas future growth potential would be most welcomed.

Cheers.

 

might be worth noting the additional costs of selling then buying again, probably over $30k by itself. You would need the next property @ $400k equivalent to appreciate 10% just before breaking even again, sounds like you just need to sit back and have a think about it IMO

 

By reading your thread I think you answered some of your questions...?
1. Change of circumstance at home....
2. Capital growth wise, ...., mainly due to the renno then sat flat the next 3 years and hasn't really moved (so looking holding long term will you be satisfied with this sort of CG?)...
3. Bought small 3 Bed (what is the demographic there for families, hence more beds, you should cater to most tenants or families, not the least if you plan to hold it long term?)....
4. In hindsight, it's not one I would buy again....(so why keep it?)...
5. If we sell now we'd likely break even... (well can you use the funds for opportunity costs elsewhere, even if you break even or make a slight loss?)...

I do own a property there, though built brand new in 2004, had no issues with tenancies, so I keep it as an addition in my portfolio as it's self sustaining now.
Would I buy there again, no, as my strategy changed over the years, now prefer less IPs with better CG for long term....!