Sell IP in Pearsall/Hocking, Perth?

[starkiller]

Hi there, occasional reader of the forum, lots of valuable insights and info on here. Was wondering if any members could comment on my situation & make suggestions. I am a real beginner so apologies as my questions might be a bit too broad.

My situation:

*Annual gross income $80,000 approx
*PPOR under construction, current loan $310,000, additional funds required to complete: $90,000
*IP: Loan $380,000, current value approx $470,000.
IP is a villa in Pearsall/Hocking, Perth.
IP has increased about 12% since 2010 (time of ownership).

My options
-sell the IP and use funds to complete PPOR, then consider reinvesting
-keep the IP and refinance

I'm a bit concerned that with the low interest rates and prediction that Perth market will stall over the next few yrs, that i'll end up with high repayments & an IP that doesn't really increase in value over the next few years. Pearsall/Hocking seems to have flatlined over the past 12 months. On the other hand, the property when rented is pretty much paying itself, is in great condition, and could potentially be worth $570+ in 2020 should I ride out the potential stall...

I might be asking a question that's impossible without a crystal ball...but any comments or suggestions would be greatly appreciated. Thanks

 

[HD_ACE]

Hi there

It seems taking your ip to 90% LVR will give you access to an extra 43k only, so short of the 90k needed.

What would the Value and LVR of the ppor be? Could you increase this LVR as to allow less money to be put in.

IMO reasons to sell over refinancing would be if its costing to much to hold and this is causing you to go backwards. Or the funds could be invested elsewhere for a better return.

 

[starkiller]

Hi,
Value on PPOR would be around $750000 so 55% LVR

I guess I'm just not sure if it is worth keeping the property in the long term...and whether it is worth selling and starting the process again with a new investment property.