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VIC South Morang hold or run

Discussion in 'Where to Buy' started by Top cat, 31st Jul, 2015.

  1. Top cat

    Top cat Member

    Joined:
    23rd Jun, 2015
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    Location:
    Sydney
    Hello all,

    Basically purchased land in south morang back in 06 when there was not much at all around in the area. Built 5 bedroom house in 09 lived there for 6 months to receive FHOG and has been a rental to this day. Over the last 6 years there has been so much going on in the area brand new Westfield new train line, bunnings and masters factory's opening more shops and I believe they are starting to build an apartment block.

    All up house and land cost me about 320k back then and I have been told I could get 480k now, has been positively geared from day one and it has gone up in value. But as the 6 year CGT rule is nearing I believe my money could work better else where Was just wondering if anyone holds property in the area or has an opinion on the area. I just think with all this infrastructure all ready happened I just don't think prices will move much more.
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    Location:
    Melbourne
    I'd hold.

    I only bought into the area at the end of 2013.

    The Y-man
     
  3. Top cat

    Top cat Member

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    Location:
    Sydney
    Why do you say that Y-man?

    Where about's did you purchase?
     
  4. Beelzebub

    Beelzebub Well-Known Member

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    I hear the outer suburbs in Melb are doing well and continuing to do well. No idea if this includes South Morang. But apparently there was a $1 million plus sale in Craighiburn recently: probably has bricks coated in gold to achieve that price, nevertheless...
     
  5. jpcashflow

    jpcashflow Well-Known Member Business Member

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  6. Reno Crazy

    Reno Crazy Well-Known Member

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    3rd Jul, 2015
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    Location:
    Vic
    I know the area pretty well. The suburb doesn't fit my criteria as an investment so I don't know the values. But it isn't a hot market atm.
    So you would probably make 160K less selling & REA fees (around $15K). I'm guessing that you are not going to return to the property so the 6 yrs can start again.
    It is a weigh up, if you are a tax payer, eg earning an income and if you were to add 50% cgt to your income post the 6yrs, what would it mean you get if you had to sell in say the next 2-5yrs?

    I would consider selling if you need the cash or have a better investment opportunity.
    The property is now 6 years old and the maintence is only going to increase with age so depending on how positive the property is that my be eaten up in fixing the property.

    As it is positive cash flow that is why I would be a bit reserved as it might be off setting a negative CG property that you may have in your portfolio.

    You need to run the numbers and look at the benefits of retaining or selling. So I can't recommend which way to jump.

    If you are going to sell I would suggest appealing to the whole market and I think tenants can deter oo's. I would sell it staged with furniture, no tenants, a good agent with professional photos and probably look at first few weeks on September as a launch.
     
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  7. CJP

    CJP Active Member

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    2nd Jul, 2015
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    Location:
    Melbourne
    Growth drivers for south morang?
    Affordability?

    It's still some hike from cbd and other employment hubs, plenty road a night mare unless u go ring road, does have train station now thou. Major retailers must have done their research to develop there. But keep in mind they are chasing masses of people, there are also masses of undeveloped land out that way so scarcity value of land underpinning growth might not be there
     
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  8. Top cat

    Top cat Member

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    23rd Jun, 2015
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    Location:
    Sydney
    Reno crazy you make some great points and have given me some advice to think about. I really need to think about if I was to sell what will I do with the profit and what my next step would be.

    Thanks guys!
     
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  9. Big Will

    Big Will Well-Known Member

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    Location:
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    They are also talking about extending the South Morang train station