Berwick (VIC): Keep it or Sell It

Hello to all,
Just a bit concerned here..need an expert advice.
Got an investment property in Berwick (-ve geared). Wondering, if its worth keeping it or sell it to buy in an area of more potential. This was our first home which we built and was PPOR for a year...emotionally attached :)
Need some advice here. Thanks
 
Do you not think that Berwick has potential of it's own?

Annualised growth from 1996 to 2006 was 9.6% which is reasonable. From memory, Berwick has a train station, a university, a TAFE, a freeway (tollway) link to the CBD, close proximity to Fountain Gate SC (say hi to Kath & Kim for me) and a reducing supply of vacant land. The next ten years could be very bright for the suburb.

Perhaps it could be well worth keeping if (and it's a big if) you are prepared to see a tenant move in to the property that you love and possibly treat it with less respect than you did.

Best of luck - Ben
 
pi2012

Suggest you read the thread "Another PPOR to IP question" in this (Property Investment - General) forum. I have posted our story of selling our PPOR - and the regrets we have had since! There may be a few things there for you to consider.

Cheers
LynnH
 
pi2012

Suggest you read the thread "Another PPOR to IP question" in this (Property Investment - General) forum. I have posted our story of selling our PPOR - and the regrets we have had since! There may be a few things there for you to consider.

Cheers
LynnH

Thanks LynnH. Not emotially attached. Just a bit curious in terms of Capital Gains in the future.
 
If it was me i would be holding it.

By the time you factor in all the costs of selling/buying then you might as well have just used the equity. If you can get someone to rent it then i would go that way

But then that might not work for you so gl in your decision
 
If it was me i would be holding it.

By the time you factor in all the costs of selling/buying then you might as well have just used the equity. If you can get someone to rent it then i would go that way

But then that might not work for you so gl in your decision

Hi Baliz66,

As i meantioned in my post that its an investment property (-ve geared), already rented as soon as me moved out just over a month ago. Was very easy to find the Tennants and actually got the rent more than it was advertised. Rental Yield: 5.34%
 
Sorry i must have forgotten to re read all the info.

Well you have tenants with a decent yield With a bit of negative gearing you shouldn't be hurt to much. The price of the suburb will go up especially in this market but perhaps other suburbs will perform better in the short term. Has the suburb seen any growth in recent months? Do you expect to see more growth in the coming months?

I dont know enough about the area but i would be holding onto any properties i owned that i was able to rent out for the time being.
 
my prediction is by the end of next yr (08) we'll start to see ripple effect coming thru to Berwick/Narre Warren/Cranbourne area.. Just think about what happened in 2000-2003.
 
my prediction is by the end of next yr (08) we'll start to see ripple effect coming thru to Berwick/Narre Warren/Cranbourne area.. Just think about what happened in 2000-2003.

Thanks Feihong. Sorry, i am still new to this..could you shed some light on what exactly happened in 2002 - 2003.
 
I have properties in Olde Berwick and Narre South. That area is still having a massive influx of people moving in. There is also lots of land out there but all the prime spots are taken already. All the OOs who live in Narre / Cranny etc see Berwick as the place to 'move up to'. It's very much an averageville with all the right infrustructure. In a high price environment it's these averagevilles that get good growth, as people have to live somewhere when they can't afford their $550k - $1m house in Hawthorn or Glen Waverley

BTW Narre Warren grew something crazy like 44% one year around 2001-2003. A catch up spurt. Something like that might happen again in the next 10 years and averaged out gives a decent rate of growth. Carrum Downs is nearby and has averaged 8.6% over 30 years, I can't see why Cranny Warren would do much different.
 
Unless the neg cashflow is really impacting on the lifestyle;

hold, hold, hold, hold.

And never sell.
Thanks L.AAussie. Neg. cashflow is not impacting on the lifestyle. The concern is the Capital Gains as i am not too sure how much Gains we will see in the near future in Berwick as compared to the Western Suburbs like: Werribee, point cook, alrona etc.
 
I think you should hold it. Areas like Berwick don't pick up until after the City and inner suburbs have had their run.

If you want to buy a new house, try to refinance this old one, and keep it. Never sell property! All you do is give the tax man loads of money and give up any potential for future gains.
 
I think you should hold it. Areas like Berwick don't pick up until after the City and inner suburbs have had their run.

If you want to buy a new house, try to refinance this old one, and keep it. Never sell property! All you do is give the tax man loads of money and give up any potential for future gains.

Thanks Rodimus. No intentionion of selling it at the moment...will wait for a year and see where things are.
 
I must say that I am reasonably familiar with Berwick and a 5.3% return is great. Are you able to share any details of the house, ie. area in Berwick, bedrooms, how old?
 
I must say that I am reasonably familiar with Berwick and a 5.3% return is great. Are you able to share any details of the house, ie. area in Berwick, bedrooms, how old?

Hi In The Red.
The house is just 19 months old (or new :))
Bedrooms: 4, Double Garage, Land Size: 620sqm.
Its near the Sweeney Reserve.
Here is the picture of the house :)
 

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Very nice house indeed. Whilst I am failry new to property investment (one PPOR in Narre Warren 1999 - bought 1st IP in Bentleigh in 2003) I feel there are no signs of property prices in the Narre Warren and Berwick areas slowing down.

I am actually looking to sell our PPOR to move to Berwick and buy another IP next year. At this stage, the IP purchased next year will be around the Endeavour Hills through to Berwick area as I feel these areas are constantly and steadily increasing in value.
 
Very nice house indeed. Whilst I am failry new to property investment (one PPOR in Narre Warren 1999 - bought 1st IP in Bentleigh in 2003) I feel there are no signs of property prices in the Narre Warren and Berwick areas slowing down.

I am actually looking to sell our PPOR to move to Berwick and buy another IP next year. At this stage, the IP purchased next year will be around the Endeavour Hills through to Berwick area as I feel these areas are constantly and steadily increasing in value.

Thanks In The Red.
I also strongly believe that Berwick got lot of potential as compared to the sourronding suburbs and thats the reason we have decided not to sell it at this stage.
 
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