Forums / Property Investing / Help Needed! / melbourne, to sell or not to sell

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Viewing 12 posts - 1 through 12 (of 12 total)
  • Profile photo of PatPat
    Participant
    @patg
    Join Date: 2016
    Post Count: 10

    Hey guys, been reading heaps but my first post, great site .
    I’m big on trying to grow a property portfolio, but hearing so much negativity makes me wonder if I should sell my investment property on a corner block before I develop it in case the market swallows the gain I’ve made over the last 5 years . It’s been a negative geared property, recently with rent rises it’s almost covering the repayments but still not the over heads.
    My thoughts are to sell put the money in my offset account and watch from the side lines and then jump on some bargains if the market flops . What are your thoughts on the Melbourne market? Thanks in advance

    Pat | 24 Hour Property Services
    http://www.24hourproperty.com.au
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    24 hour property maintenance and renovations, Victoria

    Profile photo of JerryJerry
    Participant
    @jerry_o
    Join Date: 2013
    Post Count: 46

    Why not leverage off that property and do equity releases instead? This will make you utilize the gains from the last 5 years much better.

    Jerry | Mortgage Station
    http://mortgagestation.com.au/
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    Finance Strategist - Active Investor - Serving clients Australia-wide - Based in Sydney / Melbourne

    Profile photo of PatPat
    Participant
    @patg
    Join Date: 2016
    Post Count: 10

    Hi Jerry, did originally consider doing that (my goal is to grow my portfolio so even considering selling is a big deal for me), but apparently I’m getting close to my serviceability limit.
    its also negatively geared and i feel it may hold me back even more, esp if the market stalls or goes backwards.
    id really like to get into some flips and utilise my skills in stead of doing so for my customers back pocket.

    Pat | 24 Hour Property Services
    http://www.24hourproperty.com.au
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    24 hour property maintenance and renovations, Victoria

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    my goal is to grow my portfolio so even considering selling is a big deal for me), but apparently I’m getting close to my serviceability limit.

    I totally get that.

    Selling and waiting on the sidelines would feel to me (and I guess it feels like that to you) as a step back (presuming you’re in accumulation phase) and a bet. Who knows what the day will bring and when.

    But being financially stuck in bargains (crisis) time is a horrible thought. I get that.

    Did you explore all options to increase serviceability? Different lenders have different calculators. Hopefully you will be able to refinance with one of them, thus locking in the gains and who knows, by the time the crisis will come, you might be in an even better position to benefit from it than you can currently imagine. I sure hope so 😊

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
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    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of PatPat
    Participant
    @patg
    Join Date: 2016
    Post Count: 10

    Hi Ethan . I have had two opinions and they both said similar things. I have plenty of equity but serviceability is starting to get maxed out.

    Pat | 24 Hour Property Services
    http://www.24hourproperty.com.au
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    24 hour property maintenance and renovations, Victoria

    Profile photo of bernie006@hotmail.com[email protected]
    Participant
    @bernie006-hotmail-com
    Join Date: 2009
    Post Count: 12

    I have 5 properties and only 1 has a mortgage.
    I never bought a negative geared property.
    I follow kiyosakis and deroos ideas:
    You make money when you buy, not buy and pray that value goes up!
    All the people who have negative geared properties actually gamble and hope prices go up! That is not investing to me, no offence to anyone.
    My advice, either sell or refinance and buy a property which earns you money.
    If you cant find those properties, id recomme d invest time in your education how to find it

    Profile photo of Jason StaggersJason Staggers
    Participant
    @jason_staggers
    Join Date: 2006
    Post Count: 61

    Hi Pat. It sure seems like there’s never been a better time to sell, but that’s not to say next year won’t be even better. With interest rates so low, it’s really hard to say. It would be tough to let it go though with potential subdivision gains to be had. But I can also see why you’d be keen to move on.

    Happy to catch up for a chat if you want to discuss your situation in more detail.

    Jason

    Jason Staggers | PropertyInvesting.com
    http://propertyinvesting.com
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    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,010

    Nodoc loans are readily available when you borrow the funds in a Company entity so lack serviceability is a thing of the past.

    Course borrowers may not like the interest rates or terms Nodoc lenders charge but all it all depends whether you believe you can still make money on the deal.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of MTRMTR
    Participant
    @marisa
    Join Date: 2004
    Post Count: 663

    RAMS Lo doc good product

    Profile photo of PatPat
    Participant
    @patg
    Join Date: 2016
    Post Count: 10

    Thanks guys it’s on the market and hope to close it in the next few days with plenty of offers coming in. I’ll sit tight for a little while and watch what this insane market will do. No more negative geared property for me!
    P.s I’m a registered builder…..and happy to sell.

    Pat | 24 Hour Property Services
    http://www.24hourproperty.com.au
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    24 hour property maintenance and renovations, Victoria

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Let us know how you go. Will be interesting to see what your plan is from here – are you thinking of still sitting on the sidelines to see if the market pulls back?

    What’s the plan/what do you think will drive you to make a purchase if it just flat lines/rises without a significant decline?

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of PatPat
    Participant
    @patg
    Join Date: 2016
    Post Count: 10

    Hi Corey. Yep plan to relax for a little while and go on a over due holiday. I’ll probably buy regional and this time go for cash flow instead of capital growth but something I can develop and renovate.

    Pat | 24 Hour Property Services
    http://www.24hourproperty.com.au
    Email Me | Phone Me

    24 hour property maintenance and renovations, Victoria

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