Rent out or sell student style flat.

Discussion in 'Property Investment - Other' started by Bombtrack, 18th Jun, 2015.

  1. Bombtrack

    Bombtrack Member

    Joined:
    29th Jul, 2007
    Messages:
    23
    Location:
    Melbourne
    Hi Guys,

    Just after some quick advise please..

    I am currently living in a two bedroom unit in Glen Huntley VIC but will be moving overseas soon.

    The place is among another 250+ units which are mostly identical and is mostly made up of student renters at a nearby University.

    Now the rental return will be good and will cover my repayments however I'd be surprised if there is much capital improvement given the market and the fact the flats are so student.

    Am i better off to sell and avoid capital gains or keep it as investment? I've had it for around a year.

    Thanks
     
  2. Phiber

    Phiber Member

    Joined:
    9th Aug, 2012
    Messages:
    228
    Location:
    Sydney
    If there is a K Mart around, best to forget it!

    But seriously, how will you be managing this property? Have you got a PM willing to manage students? From overseas it will be an impossible task for you!
     
  3. Truly Exotic

    Truly Exotic Property Deal Finder

    Joined:
    14th Jul, 2009
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    Location:
    In between Bahamas and Monaco
    poor Kmart, copping so much flack simply for selling some cheap heaters!!:D
     
  4. LeoT

    LeoT Member

    Joined:
    31st Aug, 2014
    Messages:
    887
    Location:
    Sydney, NSW
    Depends on what your goals and strategy is.

    If assuming you want to build a portfolio and CG is what your looking for then i'd most likely get rid of it. But having said that, if the renal yield is something amazing and puts a big chunk of cash back in your pocket each week then its something to consider.

    But as far as CG goes, its gonna go nowhere IMO.
     
  5. Bombtrack

    Bombtrack Member

    Joined:
    29th Jul, 2007
    Messages:
    23
    Location:
    Melbourne
    I'd get an agent of course.

    The suburb is good and location is great.
    I think I'll rent it for twelve months and see how it goes from there.

    Yes the idea was to build a portfolio.
    I also have a unit in Seaford which is currently rented out.
     
    Last edited: 18th Jun, 2015