When should I sell?

I have a 3/1/1 house in Sydney west, purchased in 2008 for $445,000 did a simple paint job and fixed up the kitchen with a flat pack. It's been rented ever since and it really doesn't cost me money to keep. I've never pulled the equity out from it (silly I know), so could potentially 1. Sell and have substantial cash towards paying own house or buy others. OR. 2. Keep it, Draw on equity and buy more.

Recently next door 2/1/1 knocked down same land size sold for $825,000, and surrounding others that had renovation or even crappy house but good land are selling over $1m. So to be veryyyyy conservative I should get at least the same as next door.

I'm interested in hearing from other investors who have a buy/hold strategy, do you ever sell? When you did sell, why?
 
If you have non deductible debt it could be a good idea. You just have to do the sums ad work out how much CGT payable and other costs v how much interest potentially saved.
 
Thanks Terry
And I suppose that's another question I want to ask as well. I have a few others and all are investment meaning all subject to CGT, hurts me just thinking about it. I am hesitant to sell (any) because of it.
 
You would generally only want to sell for one of a few reasons:

1. Poor performing and/or you think you can make more money elsewhere

2. Consulidate and pay down bad debt

3. Cashflow is tight.

If you sell for other reasons you would be:
1. Killing the goose that lays the golden eggs
2. bringing forward tax which will mean you have less to invest and generate an income.
 
You have an asset which costs you little and have no problems finding tenants, why would you sell?
If it was heavily ng, had tenant problems or you had cash flow problems or still had ppor debt then maybe. It is hard to buy and keep property for the long term but by selling now you will have transaction costs and what will you do with the money?
Get a valuation if you are interested in what it's value is. I think property should be held for as long as possible to capture future growth cycles and create an income stream, and only sold approaching or in retirement depending on your strategy.
 
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You have an asset which costs you little and have no problems finding tenants, why would you sell?

perhaps the grass be greener ........................

I had a phone interview today with potential client wanting to buy in Logan

he was worried that he shouldnt proceed because he was paying less than the previous owner did in 2008, and was concerned this was a market trend.................

1 minute on residex suggested it wasnt, and his seller simply paid too much at the time.

the psychology of money is so much fun

ta

rolf
 
Just wondering if there is any reason you would even thinking of selling ?


Q)Are you seeing some other better opportunity somewhere else ?
A)Then Yes sell it and put the money somewhere better.

Q)Are you consolidating your properties portfolio and trying to lowering down your debt level ?
A) Then Yes sell it

Q)Too heavily gear for your overall portfolio and killing your lifestyle.
A) Then Maybe sell, think about why you are investing initially ? what was your goal ?


If you don't need to sell, and no hassle to from the tenants or repair, then just keep it, don't sell.


I hope this help.

good luck :)
 
thx Scha9799

None of the reasons mentioned. So I guess I should just keep it.

I was wondering only because I'm beginning to think when is enough become greed? It's doubled already so am I too greedy if to just let it grow some more, as in is there terribly consequences coming that I could avoid now by selling and be happy with it.

But as you and the others have pointed out to me, none of the the reasons to sell are applicable to me at the moment so I should let it grow.
 
I wouldn't sell the CGT is big enough to buy another cheapie somwehere :eek:

If not already interest only, change all IPs to IO and pay the saved repayments off the PPOR loan, then you feel like you are getting somewhere :)
 
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