Hi everyone,
I am holding two investment properties:
. 2 bedroom apartment in Lidcombe NSW (4yrs)
. 4 bedroom house in Truganina VIC (1yr)I intend to sell one of them but unsure which one I should sell and which I should keep.
Would appreciate if you could share your opinion/thoughts on this?
Thanks,
Danny
I guess there are a number of things to look at here:
Why are you selling?;
What are the mortgage repayments?;
Rental Yield?;
Tax Benefits?:
Cycles for each property in the market;?
Buyers or Sellers Market?;
How long it may take to sell:?
Which one will give you a better sale price pound for pound?;
The areas they are located in and adding to that future infrastructure or anything that could give them a significant capital gain?;
I can’t comment on the victorian property as I don’t know the location. Suffice to say it is a house, you can do as you like with it. Is it in a growth area?
As for Lidcombe, good location with trainlines and all facilities. Is there a good or bad body corporate & strata management? Why do you want to part with either property? Is refinancing an option to reduce your repayments?
Truganina is a growing area. I am guessing it will have more potential later.
Lidcombe is quite established, the apartment locates in very convenient area (3mins to train station and quiet)I am moving overseas for a few years and want to reduce the number of investment properties.
Other reason is more personal with the Lidcombe apartment. I could hold it for few years but would sell it eventually.The question is which one I should sell at this point.
Danny, with an established area like Lidcombe, it will always be in demand. New areas, esp newly developed houses will depreciate for several years until the capital value of the land appreciates markedly, so an early sale of the property will generally result in a capital loss or only a very small gain depending upon how much stock is on the market and where new land releases are/how these will affect you.
So the decision then becomes, how long do you hold on to asset A or Asset B to achieve the same return. If you have sold for a capital loss this can be carried forward indefinitely whereas if you make a capital gain, you must pay tax on it in the year it is assessed.
Which property is best financially when you take into consideration yield and depriecation?
Do the mortgages hurt you or do you just want to offload as it is less to worry about overseas?
I don’t know Sydney all that well and Lidcombe certainly whilst not right in the city doesn’t look to far out in the grand scheme of things… Where as Truigania is about 25km out of Melbourne and certainly on the fringes. I think Lidcombe is in a better position than Truiganina so for me all things being equal it would come down to supply and demand and god knows that around Pt Cook, Truganina, Tarneit there are many many many houses for sale and rent.
Both cities have had their little boom so its even stevens there.
Supply and demand……
The rents and interests are currently offset each other given the average mortgage size.
Lidcombe apt weekly rent is 410 (directly to tenants/friends have lived there for couple of years, market based rent would be 440 minus agent management fee payable)
Truganina house weekly rent is 400 minus agent management fee of 25pw/100pm, thus weekly rental income of 375.
The value of the Lidcombe apartment has appreciated around 80K (320K to 400K since Oct 2006) and for Truganina house around 20K (350K to 370K since Apr 2010)
There is more demand in Lidcombe area at the moment given its location and current level of supply.
Whereas there is a lot of houses being built in Truganina and the infrastructure of the area is not up to par (nearby train station to be completed in 2013). Demand/supply ratio is lower in Truganina.
Should sell the one in area of more demand right ?
Thanks.
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