All Topics / Help Needed! / WA PROPERTY ADVICE

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  • Profile photo of pep07pep07
    Join Date: 2011
    Post Count: 1

    Hi Team,

    I currently have an investment property ( 3 x 2 Townhouse) located in the Bayview Estate side of Yangebup W.A. It's currently negative geared at approx $100 – 200pm. 

    I've been in a debate with myself now for about 6months whether or not to sell it and put the capital made (approx 100k) back into my residential mortgage (530k). Which would bring my mortgage down to 430k and then obviously my interest repayments would be less each month. Then look at using that equity to buy another investment property down the track.

    The problem i have is:

    1. Is it a good time to sell? Or will Yangebup house prices continue to rise with the new Coles Shopping Centre and completion of Coogee Marina?
    2. Will anyone want to pay more then 600k for a townhouse in the future or will it make it harder to sell being at such a high price? 

    Thank you for your time guys.

    Profile photo of BennyBenny
    Join Date: 2002
    Post Count: 1,416

    Hi Pep,

      I hear where you are coming from.  I'm glad you decided to ask first (might've saved yourself some serious coin).   I can't help you with Perth as I have no knowledge of it…..

      …but your comments about paying down your PPOR had me thinking "Wait a minute…. !!"    Here's why:-

      To reduce your payments would mean re-applying for a new loan now (to get the benefit of lower repayments) AND another loan application down the track when wanting to re-borrow the money.   What you need t know about is an Offset account – the best thing since sliced bread.  smiley

      Check out post #9 in the following link to get a direction to what an Offset can do for you (it is worth the effort!!)


    Profile photo of tommytuckertommytucker
    Join Date: 2010
    Post Count: 82

    There are 2 schools of thought that can be used to answer your first question.

    The first is that the proverbial is going to hit the fan shortly in which the best case is a flat line in growth for the next 18 – 24 months, worst case is a decline in prices. I'm no doomsayer, nor am I a fortune teller, but I think if China goes down the gurgler and takes us with it then we'll be closer to the flatline scenario rather than seeing a massive decline. Plus given that you are close to Perth, the train line, Fiona Stanley etc you're looking ok in my books. 

    The second is that nothing bad is going to happen in which case you're sitting on a veritable gold mine in the longer term.  Buy and hold baby.

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