Keep it or sell it??

[Nem]

Hi all, I am facing big dilemma and your help would be much appreciated!

I purchased apartment in Auckland CBD 9 years ago (not knowing anything about property investing back then) and paid 224K NZD
Apartment is tenanted most of the time, and excluding depreciation on tax return, its aprox $2,000 negative at the end of year.
I am owing 151K NZD on it its bank valued around 221K NZD now (I hope I can sell it for around 230K)
So for 9 years I keep putting extra money against that property to cover expenses and it did not experience any capital growth.
If I do refinance and start paying interest only, it will become neutral investment and I can forget about it (not putting extra money on it)
But the question is, should I sell it and use that money to invest in something "smarter"?
I should mention apartment size is only 41m2 including deck and from what I know now, that's probably one of the reasons it wont provide much capital growth in the future
Could you please help me decide to sell it or not
I believe in long term strategy to buy and hold but is it worth holding onto it or better investing same money elsewhere??
Thank you very much

 

[Madjack]

The Nz dollar has appreciated against the AUD - so might be a good time with the favourable exchange rate to divest

 

[MightyWill]

This is incredible; I thought the NZ market was very hot. Auckland in particular and if you have had it for 9 years, I would of thought it may of nearly doubled. However, when you say its only 40 plus sqm, that would make sense. No one wants to touch it. Around 55 or 60 sqm would be a diff story. 40 sqm just sounds too small.

 

[MRO]

It is all about your expectations for the future. The fact it has made you very little to date is a almost irrelevant.

If you do not fit into your strategy based on your growth expectations then the answer is simple.

 

[Nem]

It is all about your expectations for the future. The fact it has made you very little to date is a almost irrelevant.

If you do not fit into your strategy based on your growth expectations then the answer is simple.

I am really new and trying to understand as much as I can

I have something which I dont think it will provide CG as its too small and since Auckland prices did raise but my apartment didnt I dont think it has any potential CG for the future

But, its finally neutral and if I leave it as it is will be paid off in another 10 years or so

Maybe I should ask my broker if that mortgage is reducing my serviceability??

What would you do people please?? I really need some good reasons to keep it or sell it
Thank you

 

[Terry_w]

Sounds like it is costing your money each you with no CG. I would be inclined to sell unless you are expecting some sudden growth.