2 br unit Richmond sell or hold

[spiduda]

Hi all I have a Deco style renoed 2 br apartment [no parking] in Bendigo st Richmond it pays for itself. With the Channel 9 developement plus the massive amount of apts being built in Richmond I question whether I will see any CG in the next 5 yrs . Is the fact that it is period style enough to see it not be dragged down by the glut of new apartments. Debating whether to sell and use profit to pay a bit off my own mortgage or ride it out. Thanks in anticipation any thoughts appreciated. Cheers

 

[Melbournian]

depend on your circumstances - financially and your goals in life

personally - i would sell down to keep debt levels low.

i too can't foresee any massive CG in inner city melbourne.

 

[Aaron_C]

An old-style 2 bedder is very different from a shoebox in the new developments. Might be an 'apartment' but totally different buyers.

 

[jackbak]

Is the fact that it is period style enough to see it not be dragged down by the glut of new apartments.

In a word - 'no', but it will certainly soften the blow (if there is a blow). Period homes hold their value much better than new homes (generally speaking).

 

[spiduda]

Thanks guys any other input appreciated

 

[matto_]

Has your original plan and thoughts for the area changed? If not, why sell?

 

[aussierogue]

Sell and pay down debt...

I made a similar choice recently

The golden age of property invesment looking for capital gains (buy and hold) is some time past. It will rise again but not for a while.

Do something more creative with the money. Could also be property related but not buy and hold.

 

[Melbournian]

i agree paying down is the best for the moment. those times of holiding 5-10 years for a guranteed CG has passed. it still happens but does not apply across the board. go back 6-7 years. u could basically buy anything and it would have gone up 2-3 years.

Also - selling to get a good price is extremely hard in this current climate.

 

[Van Persie]

Sell if you can't wait for long term growth. Hold if you're happy for limited CG over next 10 years.