All Topics / Help Needed! / buy, rent, or re-mortgage in this market ? (sydney)

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of budgnbearbudgnbear
    Participant
    @budgnbear
    Join Date: 2008
    Post Count: 2

    My husband and I just returned from 2 years o/s.
    We have two properties:-
    one 3 bed/1 bath house in Blacktown, NSW, purchased for $220K in 2002, owing 170K on mortgage, currently rented for $270 per week.
    one 3 bed/2 bath apt in Russell Lea (Drummoyne), purchased for 460K in 2005, owing 370K on mortgage (this is on fixed rate of 6.7 until Oct 08), was rented for $430 per week.
    Our combined income is around $265K.

    We're just not sure whether to sell one property, and if so, which … or perhaps rent for a while and let our properties realise a little more value. 

    Any input appreciated !!

    Profile photo of TT552TT552
    Member
    @tt552
    Join Date: 2008
    Post Count: 4

    you should sell both of them as the price may go down even further, you may only get $200,000 for blacktown in 6 months time (peak oil and distance of Blacktown), Russell Lea you may lose around $50,000, so sell now before it gets worse, plus how secure is your job? recession cause unemployment

    Profile photo of Jon ChownJon Chown
    Member
    @jon-chown
    Join Date: 2007
    Post Count: 254

    You have to be kidding TT552.   Here is a person who has one house with a shortfall of around $100 a week and a Unit that I presume they are currently living in (as it was rented) with a loan value of $370,000 and a service cost of what? guessing around $1000 a week.   So thats a total of $57K a year on hosing and an income of $265K.   Talk about doom and gloom.

    You only make a loss if you listen to these doom and gloomers and secumb to their pressure to sell so that they can push prices down to their affordability.

    I say if you feel comfortable with your outlays and job security and have a few Dollard over – Buy another property.   Rent rises will be on your side as well.   Remember selling costs will be around $25,000.   In your situation I believe that you would be crazy to sell.

    Jon

    Profile photo of budgnbearbudgnbear
    Participant
    @budgnbear
    Join Date: 2008
    Post Count: 2
    Jon Chown wrote:
    You have to be kidding TT552.   Here is a person who has one house with a shortfall of around $100 a week and a Unit that I presume they are currently living in (as it was rented) with a loan value of $370,000 and a service cost of what? guessing around $1000 a week.   So thats a total of $57K a year on hosing and an income of $265K.   Talk about doom and gloom.

    You only make a loss if you listen to these doom and gloomers and secumb to their pressure to sell so that they can push prices down to their affordability.

    I say if you feel comfortable with your outlays and job security and have a few Dollard over – Buy another property.   Rent rises will be on your side as well.   Remember selling costs will be around $25,000.   In your situation I believe that you would be crazy to sell.

    Jon

    Yes, Jon, that is what we're leaning towards – ie not selling.   Thank you.  The unit in inner west still has a long way to go in value and the outer west unit needs time to recover, although we'd still make a profit on it I'm sure, and the rental income does cover mortgage payments.  Although rental market is tight, we're actually consider renting ourselves for a short while to build a little more savings for another IP.  We still need somewhere to live ourselves (currently not living in the unit and feel it's too small).

    Profile photo of BanjoSmythBanjoSmyth
    Participant
    @banjosmyth
    Join Date: 2007
    Post Count: 44
    Jon Chown wrote:
    You have to be kidding TT552.  

    Jon

    Thanks for your common sense Jon.  I also believe you would be crazy to sell – especially considering you income is relativity high.  Hold on to the properties and enjoy the rewards in the future!

    Cheers Banjo

    Profile photo of devo76devo76
    Member
    @devo76
    Join Date: 2007
    Post Count: 542

    Personally i think now is the best time to start a cult as there seems to be no shortage of willing sad depressed  doom and gloom followers.

    Follow me everyone. Just give me all your money and i will tell you the answer to peak oil.

    PS. Actually. Funny story. A cult that has its compound near me( Sad but true)  handed out a news letter around 3 months before the year 2000 stating that the world would end in three months time. Yet on the back was a form to fill out to get a 12 month subscription. HA HA HA. I guess they must have planed on printing it in heaven.

Viewing 6 posts - 1 through 6 (of 6 total)

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