Sell or Hold

[zimby]

Howdy

So was thinking today, we are about to Move out of what is essentially our PPOR and become tenants, while keeping this place our PPOR.
It should be comfortably positively geared due to excellent growth, 30% in 2.5 years.
It is a 4 Bed 2 bath 130mtr2 5km from the Brisbane CBD in an excellent location
But it also got me thinking, what if I sell this and utilize the profit to purchase 2 properties, thus putting me in a better position( hopefully)
I think in the long run the Unit above wont perform as well as say 2 houses 15-20km from the CBD.


Cheers

 

[Redom]

Howdy

So was thinking today, we are about to Move out of what is essentially our PPOR and become tenants, while keeping this place our PPOR.
It should be comfortably positively geared due to excellent growth, 30% in 2.5 years.
It is a 4 Bed 2 bath 130mtr2 5km from the Brisbane CBD in an excellent location
But it also got me thinking, what if I sell this and utilize the profit to purchase 2 properties, thus putting me in a better position( hopefully)
I think in the long run the Unit above wont perform as well as say 2 houses 15-20km from the CBD.


Cheers

Best to access the equity and purchase in areas where you'd like to invest.

You can withdraw some/most of the 30% gain, and use it as deposits to fund one/two cheaper properties.

Cheers,
Redom

 

[Kinnon Bell]

Other than selling to utilise the cash as deposits for other properties is there anything else you?re hoping to gain? Are you close to your serviceability limits?

The only advantage I can possibly see at the moment (assuming it?s always been PPOR) is the CGT concession but you would still have selling costs. It?s performed well ? what is making you think it won?t perform well in the future? Will the market become saturated with similar units? How much of an opportunity cost could there be if you sell, or even hold on to it?

Like Redom said, an option could be to draw on equity and use that to leverage other purchases.

 

[Terry_w]

You would be selling a good performing property to buy another. this would cost you around 10% of the value of the property.