Time to Sell in Newcastle?

Hi team

I will be moving out of my PPOR in Newcastle (North Lambton, close to the uni) within the next 6 months. I will be renting a home elsewhere with my boyfriend for a while, no immediate plans to buy a new PPOR until we work out if we enjoy living together, at which time we will choose something together. That will be at least a year away.

I am torn between selling the PPOR now, or renting it out for a while and selling in the future. I've spoken to a few RE agents but I'm really trying to get some unbiased opinions on the situation.

I have completely paid off the loan from when I bought it, so it isn't a tax effective investment. I do however, have about $200k of loans relating to other property purchases secured against it that I would need to repay if I sell.
So selling would reduce my overall tax deductions for my other properties. Holding it would give a fairly good rental return and it would remain CGT exempt until I bought a new PPOR.

My original plan had been to hold it and rent until I wanted to buy the next PPOR, at which point I would sell it and pay cash for the new place. By that time the vals on my other properties should have increased further to be able to refi some of the $200k currently secured against it.

A spanner in the works is that two of my neighbours - directly next door and one diagonally behind me - are going to be developing their blocks. The one right next door hasn't provided their plans yet, but I can imagine that one impacting on my view and privacy (I have floor to ceiling windows on my main bedroom facing directly into their backyard that will soon have townhouses in it)

I currently have the only 3 bedroom townhouse in the area. Once these developments are done, they will also include 3 bedders so valuers and potential purchasers will compare them to mine. If they achieve good sale prices then it might drag up the value of mine, but I'm not sure if I want to risk the extra competition when I need to sell/find tenants.
I also can't imagine it would be particularly attractive for someone to buy/rent while construction is underway.

So I think my choices now are to either sell it before the development work starts, or hang on to it and rent until after the construction is complete and they have sold/tenanted all the new townhouses.

All opinions are welcome.
Thanks!

 

I would sell it now .. I buy in these areas all the time and im noticing a slow down , one onky has to look at 69 Lorna Ave Waratah to see it go from 420 to 390k and on the market for nearly 6 minths.
The tenants will make the house worser anyway, better to sell it now whilst prices are still relatively high and get those loans paid off.

And anyway when its sold you can start afresh instead of having to worry about money and selling in the future.
I mean it coukd take a few months to sell anyway so inwould start now.

Deep down you really want to sell anyway right... I can feel it within your post... Maybe you think prices will go up if you sell now ?... I doubt it... Theres plenty of houses in Lambton for sale... Sell it whilst u have the chance... It sounds like a lot if steess in your life keeping it then finding tenabts etc ... Hopefully they wint wreck the place .. No do what you really really want to do and offload it and pay iff the loans .

 

I don't think this property at 69 Lorna Ave Waratah is a good example of any so-called slow down. This property is on a major arterial road (4 x lanes of traffic) and directly opposite the Mater Hospital. Who wants to be woken by ambulances at all times of the day & night? It really is a poor location for an IP, in my opinion.

 

Buy all the time?

 

Hi, I can relate to this because I also sold my PPOR (paid off) and bought a new PPOR and in a short time, thanks to the market, gained quite a big equity and just bought a place in Newy. I sold my PPOR because yield is low. You may need to work out the pros and cons with an accountant. Where's your property?

 

Dont mean to sound rude, but why would anybody take any advice you give about investment properties seriously?

 

You seem to.. You reply to nearly every post i write until the mods delete your posts.
Almost like i have a stalker !
Secndly the difference between me and you is i can sit on here all day and still get paid . You seem to be the silly one when your still working obviously not doing too much business.

Now look what you done to this thread

Do me a favour... Stop replying to my posts ! Use the ignore button please.

 

As an unbiased third party... It's a bit hypocritical to denigrate the language of other people, when you type the way you do Darlinghurst Boy. I've no idea of the history between you two, but right now, you're coming across as a petulant child.

 

I know that 99% of what you post is trolling, sometimes obvious, sometimes subtle. The trouble is not everyone has a trollmeter and may take what you write seriously.

 

I have asked the Mods once again to delete your rude replies to me, must be getting on their nerves by now.
Does nothing in your favour by constantly bullying me in fact people think less of you and the business you represent.

 

You and your facts. Getting in the way of anecdata

 

anecdata - new word - I like it. Congrats

 

Its actually 2 lanes .. On a bend .
Mater Hospital could be a plus if staff want to rent nearby to work.

Across the road the 2 bedroom with the picket fence sold for 275k a few months ago current rental is $400
Dont ask me why 69 is not selling, i presume more to do with building and pest than anything else.

Anyway we are getting off track from the OP who asked a question .

 

Yet I am not the one typing insults then editing them over and over?

 

Yeah I was including the 2 x turn lanes (both directions) to get 4.

Believe me, no hospital worker is looking to live on a busy, noisy, main road opposite their workplace - unless it is cheap. Does not suit many shift workers at all. Overall an inferior location IMO.

 

What a joke and another way of getting caught out once again.

In regards to the OP situation, there was the lone free ranger (house) in Caringford that held out while their neigbours had block of units being constructed being build. I think some of the other guys know more about that one. I believe it was profitable for them holding out.

 

There's always a risk. I would strongly suggest that OP works out the numbers to see what stacks up. I don't know the OPs financial situation so can't comment further. As efficiency, strategies in wealth building and risks come into play. Would love to know the end decision, keep or sell.

 

I'd hold onto it. Live with the BF for a year or so then assess where you're at with values of your portfolio. As you say you keep the CGT exemption anyway. Just not the ideal position to have it paid off (from a tax view).

I have 2 properties near you and one of them is about to have a 10 townhouse dev down the road. I am of the belief that it will pull up my property as the area gentrifies with modern dwellings.

 

Will you be able to develop on your property? Newy is looking good.