Hi All,
Seeking advice on should I should sell my first investment property in Frankston (Karingal)...
Property details:
- 3bed +1 bath +1.5 garage AV Jennings style in Gretana St, Karingal
- Rent: 285/wk rent on 12 month contract (good tenant after some nasties)
- Finance: 250k IO loan.
- Purchased for 260k in May 2008. Lived in for first 1yr and I do not own another property.
- Est. Value at this stage: 320-340k
Why sell
- reduce overall LVR:
> I have a ~500k margin loan at ~60% LVR against bank and spec resource stocks (I believe they have material growth to come in 3-12 months)
> in a few months I am starting a new business overseas. It does not require a huge cash injection, however I will quit my current job to focus on this and therefore want to bring my CF from investments to break even.
- increase 'quality' of my real estate. focus on better located with more options to improve/ develop (ie: more flexible land size/ configuration relative to zoning/ location, closer to infrastructure of trains, beach, education)
Please fire away with your thoughts/ comments... anything welcome of course, however I'm most interested in answering the questions of:
- is Frankston growth relative to the general market in Victoria/ Australia expected to be higher than 'average' (and on what basis)?
- do my reasons for making the decision to sell make sense, or should I look at this in a different way?
Thank you in advance!
David
Seeking advice on should I should sell my first investment property in Frankston (Karingal)...
Property details:
- 3bed +1 bath +1.5 garage AV Jennings style in Gretana St, Karingal
- Rent: 285/wk rent on 12 month contract (good tenant after some nasties)
- Finance: 250k IO loan.
- Purchased for 260k in May 2008. Lived in for first 1yr and I do not own another property.
- Est. Value at this stage: 320-340k
Why sell
- reduce overall LVR:
> I have a ~500k margin loan at ~60% LVR against bank and spec resource stocks (I believe they have material growth to come in 3-12 months)
> in a few months I am starting a new business overseas. It does not require a huge cash injection, however I will quit my current job to focus on this and therefore want to bring my CF from investments to break even.
- increase 'quality' of my real estate. focus on better located with more options to improve/ develop (ie: more flexible land size/ configuration relative to zoning/ location, closer to infrastructure of trains, beach, education)
Please fire away with your thoughts/ comments... anything welcome of course, however I'm most interested in answering the questions of:
- is Frankston growth relative to the general market in Victoria/ Australia expected to be higher than 'average' (and on what basis)?
- do my reasons for making the decision to sell make sense, or should I look at this in a different way?
Thank you in advance!
David