Should I Sell or Rent it?

Discussion in 'Investment Strategy' started by Billa, 5th Feb, 2020.

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  1. The Y-man

    The Y-man Moderator Staff Member

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    Yep.... that's the generally accepted rule.
    It looks like you have to self-assess (?) in ACT - so if you don't tell them, they take your money??
    I'd be looking for a refund ASAP.

    Maybe @geoffw or @SatayKing can offer some insight on this....

    The Y-man
     
    The Y-man, 5th Feb, 2020
    #41
  2. The Y-man

    The Y-man Moderator Staff Member

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    The first was in Clayton South Vic.
    #2 in Lalor Vic
    #3 in Epping Vic

    The Y-man
     
    The Y-man, 5th Feb, 2020
    #42
  3. Billa

    Billa Well-Known Member

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    that's concerning in 2 years the values of the place dropped so much and they are house/land property type.

    unit type will perform even worst :(
     
    Billa, 5th Feb, 2020
    #43
  4. The Y-man

    The Y-man Moderator Staff Member

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    oh yeah, the other great learning - NEVER take what they say as gospel!

    The Y-man
     
    The Y-man, 5th Feb, 2020
    #44
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  5. Billa

    Billa Well-Known Member

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    ah that's in Vic, whole new different of ball game.
     
    Billa, 5th Feb, 2020
    #45
  6. Billa

    Billa Well-Known Member

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    yup and i'm beating myself and putting too much of stress that all is doomed with my investment journey.
     
    Billa, 5th Feb, 2020
    #46
  7. The Y-man

    The Y-man Moderator Staff Member

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    Not so sure about that. My theory in buying units and apartments is that because they are more affordable, more people can afford them (especially in bad times) and therefore a bigger market.

    3BR townhouses in Mondcrieff

    Sold May 2018 $497k:
    https://www.realestate.com.au/sold/property-townhouse-act-moncrieff-128096390

    Sold Jan 2020 $485k
    https://www.realestate.com.au/sold/property-townhouse-act-moncrieff-132394090

    Ok, so no growth but for from a crash.... and better than some of the people who bought a house...

    The Y-man
     
    The Y-man, 5th Feb, 2020
    #47
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  8. The Y-man

    The Y-man Moderator Staff Member

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    Yeah but at the time I bought them, people would have said I was crazy, because all three of those were in "rough" suburbs.

    The Y-man
     
    The Y-man, 5th Feb, 2020
    #48
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    Looks like you bought brand new (possibly OTP) and sold the dream. New property doesn't appreciate as the market has to rise to absorb the developer's profit. Two years is too short a timeframe.

    The strata levies are set low initially as there are warranties which come with many items, so maintenance is essentially prepaid. After the first years, the full costs of maintenance become apparent.

    If you bought house and land (or do so now) you are responsible for all of the maintenance, repairs, replacements, grounds keeping, insurances, rates etc - it's not going to be cheaper.

    Having facilities like a pool, bbq area, extensive gardens etc are all great to have and makes for a nice place to live however they come at a cost.

    By the sounds of the location, it will always be in demand due to proximity to the proposed shopping centre & schools - will people pay premium rent for the school zone?
     
    Scott No Mates, 5th Feb, 2020
    #49
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  10. geoffw

    geoffw Moderator Staff Member

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    Apologies, I can't. I'm just across the border, and haven't dealt with ACT property for some years.

    Some expert help may be required. Perhaps some local financial planning advice may be in order.sbither fee, but it could be well worth it.
     
    geoffw, 5th Feb, 2020
    #50
  11. TMNT

    TMNT Well-Known Member

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    Never ever take what a real estate agent says, period!
     
    TMNT, 5th Feb, 2020
    #51
  12. TMNT

    TMNT Well-Known Member

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    Yman, care to elaborate motivations for buying unit in epping?

    Its fairly metro whoop whoop now and moreso before
     
    TMNT, 5th Feb, 2020
    #52
  13. Billa

    Billa Well-Known Member

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    you're correct it is OTP project, and because to take advantage of FHG benefit and saving from paying stamp duty.

    I've seen the units in my complex that's got put on market, they got snatch pretty quickly within 1 - 2wk.
     
    Billa, 5th Feb, 2020
    #53
  14. Billa

    Billa Well-Known Member

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    well, shooting myself now....
     
    Billa, 5th Feb, 2020
    #54
  15. The Y-man

    The Y-man Moderator Staff Member

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    Yield ($300pw already tenanted), lack of interest in market/no competition (already tenanted, bright shinier houses in North Epp and Wollert devs), location (easy walk to 901 route)

    The lalor one was even funnier - the agent didn't even bother to front up to the open!! We had to call, leave a message and organise another time....

    The Y-man
     
    The Y-man, 5th Feb, 2020
    #55
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  16. Billa

    Billa Well-Known Member

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    y-man, from what i've seen colleagues and friends they got house/land property type, they perform well and made profit....
     
    Billa, 5th Feb, 2020
    #56
  17. Trainee

    Trainee Well-Known Member

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    Dude have you called revenue ACT yet?
     
    Trainee, 5th Feb, 2020
    #57
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  18. Archaon

    Archaon Well-Known Member

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    I think you said you could rent a 1br closer in for 400p/w and rent this unit out for 570p/w this is deemed Rentvesting.

    A few things that will be opened upto you were you to rent out your townhouse;
    ~ Can get a depreciation schedule done, could be $9250 worth of deductions per year ($3000 back at tax time based off 32.5 nominal rate)
    ~ All B/C, interest, fees, charges can be claimed back off your taxable income, so there is alot more added benefit than just the difference between $2470p/m rent and $1800p/m mortgage.
    ~ All repairs etc become tax deductible, where you are out of pocket whilst living there (repairs in a place that you rent the Landlord is liable for repairs and maintenance.
     
    Archaon, 5th Feb, 2020
    #58
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