So I have this house. It is currently vacant, and has been for sale for around 2 months - I don't have the REA agent contract handy but I suspect it'll be off sole agency any minute now and I will be able to pull out of the contract sans penalties if I want. Electricity has been off for 1 month, and the current insurance says a house vacant for more than X days (probably 60) attracts a $2000 excess. The house is clearly vacant, the weeds are getting ridiculous (it is on a 1800sqm block so that's a lot of space to grow weeds) and everything loose around the house has already been stolen. Given time, the stuff on the inside of the house will start to walk too, then the house itself will walk.
I've had 3 contracts fold since it went up for sale. There's only the rest of this month left on the boost. There's a reasonably high chance it won't sell. The house is only in my name.
I have it listed for $85,000. On selling I lose $4500 to the agent, about $1000 or more in break fees from the loan (honeymoon intro rate variable CBA loan that is barely over 1 year old), and probably another $1000 or more on the conveyancer and outstanding council rates (which I stopped paying when we decided to sell the house).
The reason I am so keen to sell is because I have an approved subdivision on my currrent house and it will cost about $10k to complete (although there is room to move on the septic tank moving - $4000 of that cost - if we dig our own hole). Since the house was put up for sale, however, I've scrounged up about $5000 and am saving over $1000 a month towards it. If I keep the house listed for sale chances are I'll have the entire figure for the subdivision, cash, and there won't be any pressure to sell. If it comes down to it, after the subdivision is through we can sell our current house (worth about $160-180k) and move back into the old house until we find somewhere better. Maybe rent the old house for a year in the meantime.
If I rent the house out I'd get about $100-120 a week rent - $5200+PA.
Council rates are about $600 a year.
Landlord's insurance? No idea what that costs. Current house and contents is $400PA.
Then there's maintainance. The house is in very good repair but it is 130 years old so anything could happen, and I can think of two things staight away a tenant might want fixed (one bedroom has no window and the toilet is .. low ... courtesy of some strange renovations by previous owners).
P&I mortgage is $2300PA.
No clue what PM fees are, most places out this way are self-managed, although there is *one* PM agency round here.
It is a big, roomy, well looked after house in a very, very feral area.
If miracles happen and they start a mine or more wind farms or some other Real Job Making stuff in the area, the house is on a block 18x100m with three street frontages so I could put a donga or two on the back.
Objectively, should I keep this house or continue holding it vacant for sale? The other half is in the "sell it at all costs" camp and I'm undecided ... I've had this house for 6 years, I'm kind of attached.
ETA: I don't pay tax (its a low income with kids thing) so negatively gearing doesn't come into this.
I've had 3 contracts fold since it went up for sale. There's only the rest of this month left on the boost. There's a reasonably high chance it won't sell. The house is only in my name.
I have it listed for $85,000. On selling I lose $4500 to the agent, about $1000 or more in break fees from the loan (honeymoon intro rate variable CBA loan that is barely over 1 year old), and probably another $1000 or more on the conveyancer and outstanding council rates (which I stopped paying when we decided to sell the house).
The reason I am so keen to sell is because I have an approved subdivision on my currrent house and it will cost about $10k to complete (although there is room to move on the septic tank moving - $4000 of that cost - if we dig our own hole). Since the house was put up for sale, however, I've scrounged up about $5000 and am saving over $1000 a month towards it. If I keep the house listed for sale chances are I'll have the entire figure for the subdivision, cash, and there won't be any pressure to sell. If it comes down to it, after the subdivision is through we can sell our current house (worth about $160-180k) and move back into the old house until we find somewhere better. Maybe rent the old house for a year in the meantime.
If I rent the house out I'd get about $100-120 a week rent - $5200+PA.
Council rates are about $600 a year.
Landlord's insurance? No idea what that costs. Current house and contents is $400PA.
Then there's maintainance. The house is in very good repair but it is 130 years old so anything could happen, and I can think of two things staight away a tenant might want fixed (one bedroom has no window and the toilet is .. low ... courtesy of some strange renovations by previous owners).
P&I mortgage is $2300PA.
No clue what PM fees are, most places out this way are self-managed, although there is *one* PM agency round here.
It is a big, roomy, well looked after house in a very, very feral area.
If miracles happen and they start a mine or more wind farms or some other Real Job Making stuff in the area, the house is on a block 18x100m with three street frontages so I could put a donga or two on the back.
Objectively, should I keep this house or continue holding it vacant for sale? The other half is in the "sell it at all costs" camp and I'm undecided ... I've had this house for 6 years, I'm kind of attached.
ETA: I don't pay tax (its a low income with kids thing) so negatively gearing doesn't come into this.