What to sell and when ... Blue Mountains or Dodges Ferry, Hobart?

I currently have 3 properties and I would really appreciate some thoughts / advice around my reasoning of what to sell and when. My loans are as follows;

All loan tems are 29 years.

Dodges Ferry, Hobart
PPOR – rare Park Beach beachfront cottage
Approx value – hard to say $450k+ ?
CBA loan - $261,000. Pi
Monthly repayments - $1509

Dodges ferry – previous PPOR, now investment property.
Approx value - $300k + ?
ANZ loan $343k io (1 year remaining)
Monthly Repayments - $590
Tenanted $280 per week.

Blue Mountains – previous PPOR, now investment property.
Approx value - $580k
ANZ Loan - $298k
Just switched to pi. Monthly repayments $1607
Excellent long term tennant.
Rent $380 per week ($360 in my account after management costs). (Below expected rental – could push it up to $400 per week in my account managing myself + a small rise)

I had been thinking to sell the Blue Mountains property and pay off my PPOR, or close to, but prices are falling. And now I am thinking to wait until around 2025 when hopefully the airport is attracting people and jobs and sell the property with a DA for a granny flat and a 3rd bedroom created by moving the front door. The cash for this property would be used to pay off remaining loan on PPOR and hopefully have enough cash to invest in something that will pay a weekly dividend in my early 60's.

Dodges ferry is selling well at the moment and prices are climbing. I would put the approximate $140k or so (minus $ for capital gains tax) into my PPOR loan / offset, leaving me with a loan of around $130k.

I am a mid fifties sole parent, working as a casual relief school teacher, so feeling nervous about making the right decision … And not wanting to get caught out holding more than I can manage in the future.

Thanks very much in advance for any replies.

 

Somewhere I read that it is best to hang onto the properties that you believe will have the best capital growth.
If you take into account the combination of the expected capital growth and the net yield it may be enough of an equation to help you decide which one you want to sell.

All things being equal, then I'd sell the one that will allow you to come out with the best SANF result. ie if you are worried about being overcommitted, then work out which one will give you the best financial relief if you decide to sell it.

That would be my course of action, though others will have different views.

 

It looks like Your two ANZ loans are cross secured.

If you sell Dodgers Ferry, they'll need to restructure the debt as the loan is more than the property value - they 'may' ask for new financial details for this.

If you sell Blue Mountains, bear in mind that they will use some of the proceeds to pay down Dodges Ferry so you may not end up with as much cash as you think.

 

Might be worth getting some paid advice from Jess, or someone else that specializes in risk management/ financial advice.

 

Are they? we are still seeing positive growth in the upper blue mountains it seems

 

Had a quick look. Does look like the prices have been dropping in the last six weeks. Still reasonable prices for some properties though.

 

Dodges on the other hand is patchy. Some properties are commanding good prices and others are taking a hit, or not selling at all.

 

SQM?

 

Thanks so much for the replies. I am still thinking it through and trying to make a good decision. Jess, the properties were originally crossed, but only for about $2000 - with a reval, the Dodges property would stand alone now. Also, sorry I mistakenly typed that my loan for Dodges ferry was $343k, when it is $143k. So that property is cash positive. The one in the Blue Mtns is around neutral, but I think the Blue Mtns has more potential for growth than Dodges ferry. And having all my eggs in the one basket (ie PPOR and investment property) in Dodges ferry makes me nervous...
Radson, the mid mountains has definitely slowed and dropped, but all the cheapies are selling quickly and blocks of land. My friends up there say there is a lot of building activity. Hobartchic, the cheaper houses in Dodges are selling fast (as in a week or so) - I was hoping to get around $300k for mine after painting and some renovating, but I don't think we are there yet. Thanks again for everyone's time and thoughts.

 

I just went through recent sales and made some quick comparisons.