My portfolio

Which property should I sell?

  • None of them

    Votes: 15 71.4%
  • Property A

    Votes: 0 0.0%
  • Property B

    Votes: 0 0.0%
  • Property C

    Votes: 0 0.0%
  • Property A and B

    Votes: 0 0.0%
  • Property A and C

    Votes: 0 0.0%
  • Property B and C

    Votes: 0 0.0%
  • All of them

    Votes: 6 28.6%

  • Total voters
    21
Congratulations

Good centrally located properties . Low maintenance . few problems with tenants . Good growth which will ( in all likelihood ) continue

Keep them all .

What would I prefer ? Central located unit one stop from central railway , or a couple of houses in 2770 . I'd go Zetland .

Haymarket even more centrally located .


Cliff
 
Hmm i'd go against the grain here and say selling may be well worth it, although i'm not too sure which property is best. Not very diversified, three very similar properties, all low yeilds and all experienced strong gains (especially recently).

Reasons:

Sydney's 'supply problem' isn't as much as an issue as in the past, so this will impact on growth in the short-medium run. Supply>Demand for the next few years as all the stock comes online (see BIS Shrapnels granular work) and some those areas are heavy in supply.

Of course it will take a while to catchup to pereniall undersupply in Sydney over the last decade, but for the next few years, the market is finally responding. E.g. Australia's built the same number of stock for a decade, despite the population growing at around 2% p.a. Thats 25% more people and the same stock increase YoY. Doesnt make much sense.

It could make sense to use funds and re-direct elsewhere.

I'd whip up an excel spreadsheet and work out the cost of selling, and see what growth rate % difference you need to make up those selling costs within a few years.

Despite the systems innefficient incentives against selling property (e.g. it makes sense to sell your latest purchase relative to the one in 1992), it could be worth it if it makes your investments more productive/less risky.
 
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