5 years ago I purchased a small sydney terrace in a beautiful, quiet, up and coming area which is 5 minutes drive from the city. The house is located in a block of streets known as the “Golden Triangle”. This house is the worst house in the best street scenario. When I purchased it I could only just afford it, it was a risk and I had to budget well to stay there ie fix my interest rates and budget my wage each week, and this worked for me.
I have now found that the property has been valued at $210,00 more than I purchased it for. A year and a half ago I moved out of the property and rented it out. I am now finding myself positive gearing the property to wonderful tennants, which has been my investment goal for the house.
With the equity, I have now been able to purchase another property in another state and am still able to positive gear my Sydney house.
It is always in the back of my mind what I should do with my sydney property. Should I sell it and use the money to buy a couple of places to positive gear for the future, should I wait and renovate this worst house in the best street, or should I keep it for the future.
Hi Sue,
The problem with selling and buying something else is that he costs of selling and buying are high. You would be up for agents fees, perhaps CGT on the sale, and stamp dutyu on the new purchase.
If it was my property, I would keep it and look to purchasae another property. I wouldn't sell.
Well done on your purchase, it sounds like it is working out well.
I agree with Dan. It sounds like it is a property located in a great growth area. Property in this part of Sydney is very hard to come by- no one is making any more land here so I can only see prices continuing to rise. If were you I would keep the property as it is an asset that is performing very well.
Thanks for your comments so far Dan and Luke.
One of the reasons I feel I should sell it is because of the bad wrap Sydney seems to be getting. To be honest, I moved out of there because the traffic, hustle and bustle and general rude people finally got to me.
I was thinking another city like Melbourne, Adelaide or Canberra are better bets for the future.
It doesn’t matter how much you dislike living in Sydney, keep at least one tangible asset in one of the most expensive places in the world. You can’t go wrong. With the number of migrants trying to squeeze themselves in this gorgeous city, and with the number of international investments pouring in, you’d want to keep a toe-hold, at the very least.
Once you divest yourself of all Sydney properties, you may not be able to buy-back in. You see, Sydney isn’t just the most expensive State in Australia. It is one of the most expensive in the WORLD. Meaning, it is PRIME holding. As in PRIME with a capital P.
Solution: Use a line of credit against the property to buy elsewhere if you can reasonably afford it.
I hope this makes sense.
SueD wrote:5 years ago I purchased a small sydney terrace in a beautiful, quiet, up and coming area which is 5 minutes drive from the city. The house is located in a block of streets known as the "Golden Triangle". This house is the worst house in the best street scenario. When I purchased it I could only just afford it, it was a risk and I had to budget well to stay there ie fix my interest rates and budget my wage each week, and this worked for me. I have now found that the property has been valued at $210,00 more than I purchased it for. A year and a half ago I moved out of the property and rented it out. I am now finding myself positive gearing the property to wonderful tennants, which has been my investment goal for the house. With the equity, I have now been able to purchase another property in another state and am still able to positive gear my Sydney house. It is always in the back of my mind what I should do with my sydney property. Should I sell it and use the money to buy a couple of places to positive gear for the future, should I wait and renovate this worst house in the best street, or should I keep it for the future.First of all, congratulations on your investment!
Location is the most important factor for Capital Growth, and Sydney has been one of the prime areas of growth in Australia for the past decade
What you decide to do now with your property now really depends on what your goals are, and what time frame you are looking at
Personally I would invest where my return is greatest
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