to sell or not ? advice please from some people who have had hindsight!!

hi wylie,
i think once started in vic it gives you 2 years to complete.

 

it does seem to be rippling out that way may be worth watching it for a few months to see if any indication..... could do with a cristyal ball at this point......

 

Prices out this way have definitely gone crazy over the last couple of years, will they keep going up or stop? I have no idea, everyone keeps saying it can't go on but it seems too!

The yeild on your property seems great for the area (especially for a property with development potential) most subdividable blocks would rent for around $360-380 pw at a guess.

The only thing you have to be careful of is letting the planning permit lapse as the council may have got stricter since you had your plans approved (things like detention systems can add large amounts to build costs) which could affect if you choose to sell in the future.

If you do sell now I would just be careful that you leave enough time for settlement and the new owner to get the tenants out (90 days) and start the development.

Not trying to talk you into selling at all, prices are definitely still climbing and demand is definitely there, I would just be careful letting the Plans expire.
I have pmed you also

 

Hi brendon,
Address is Carmen ct.lilydale.
Happy for you to drive by just be mindful there are tenants in both. If you email me i can send a plan for you to look at if interested.
Plans expire end of june next year. Tenants have about 4 months left on current lease.
Spoke with council today and they're happy if its started well prior to the end and can be finished after the end date.
Let me know yours thoughts. Agents are keen and priced $550k- upwards
Ta wayne

 

Do you know or investigate how many units would fit on this block

 

All depends what you can do with the money. Sure it may double again in 5 years.

Or you could've put it into gold stocks 4 months ago and tripled your money already. In fact some have gone up 5-6x.

 

You need to be guided by the numbers. How much will you have in hand after selling fees and cgt now vs how much equity or cash (if u sell then) youll have at the end of going through the exercise of building. Then take into account the risk and time factor.

Without those figures its guesswork

 

At that yield no way would I sell.

 

Even if you had more money that could be made elsewhere?

As @Omnidragon stated it comes down to allocation of capital and the opportunity cost of not selling and deploying that elsewhere. This is important to consider, along with having the figures i mentioned in above post, in order to make an informed and strategix decision on whether to sell or not

 

Why do you have to sell it?

Are the numbers guiding you or is it emotion.

I live on the sunny side of this country so not familair with the locale but whats been already discussed plus my gut instinct says keep it!

 

Yes agree of course

 

Hi all,
Thanks for all the input and sage advice and i have had time to dwell on the fact and will keep it. The yield is terrific and not going to better that without a lot of effort and time, of which i don't have with 2 young kids......
Thankyou all for helping me to see the trees in the woods.