Wollert, Melbourne

Hello everyone,

I have a 3 bdr, double garage and 2 bathroom house in Muzzlewood Way, Wollert, Melbourne. I bought the land in 2011 and built the house in 2012. It cost me $380K all up. Till now the property price haven't increased and my wife want to sell the property and invest in Sydney. I just bought a townhouse in Ingleburn, Sydney. I am afraid after paying agent's commission and tax I won't even get my money back let alone the profit. I read all the potential growth and development happening in Epping Area and want to hold the property for few more years.

I live in sydney so I don't always see how things are moving in Wollert? I know lots of new estate and development is going on. Does that mean people are more inclined to built new house then buy standing house unless they get it for bargain?
Any Suggestions, What would you do?
 
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Hello everyone,

I have a 3 bdr, double garage and 2 bathroom house in Muzzlewood, wollert, Melbourne. I bought the land in 2011 and built the house in 2012. It cost me $380K all up. Till now the property price haven't increased and my wife want to sell the property and invest in Sydney. I just bought a townhouse in Ingleburn, Sydney. I am afraid after agent commission and tax I won't even get the my money back let alone the profit. I read all the potential growth and development happening in Epping Area and want to hold the property for few more years.

I live in sydney so I don't always see how things are moving in Wollert? I know lots of new estate and development is going on. Does that mean people are more inclined to built new house then buy standing house unless they get it for bargain?

What do you think? What would you do?

What you own is definitely not scarce. Land and lots of it. If you are thinking of selling I would do it while the market is strong. Properties like this struggle to sell when the market is flat.

You may have been better off buying an old house near epping central instead.
 
What you own is definitely not scarce. Land and lots of it. If you are thinking of selling I would do it while the market is strong. Properties like this struggle to sell when the market is flat.

You may have been better off buying an old house near epping central instead.

How is the market right now? Is this the right time to sell or should I wait. Its on rent so I could hold for couple of months, or even years if this tenant stays. Do you think the wollert property value will increase anytime sooner?
 
There are much better areas for growth. You're too far away from the station too. I would rather own a townhouse closer to the cbd along high St than a house in wollert.

I developed three units just south of there. Sold them all as growth prospects are better elsewhere.
 
If it was in my portfolio I would be selling.

It is worth what it is worth, holding on because it will be sold at a loss in an emotional decision, the real factor is where can you invest the money when you sell, if that is better than this place then get out.

Land forever out there, what is going to make this property increase in value? First Home buyers save stamp duty, get a grant and a brand new house by building, why would they buy a 2nd hand house. It is FHB territory with very reason for anyone to buy an established house in the area.
 
Smokey,

As per oc1's posts - bit of a problem area, and in addition: no transport.

Having said that, you may not be able to sell, as tons of new homes coming onto the market (just go to re.comau and key in wollert), so you would have to sell significantly under a "brand new price".

So my vote would be "hold". Eventually......eventually......the population will spread north.

The Y-man
 
Smokey,

As per oc1's posts - bit of a problem area, and in addition: no transport.

Having said that, you may not be able to sell, as tons of new homes coming onto the market (just go to re.comau and key in wollert), so you would have to sell significantly under a "brand new price".

So my vote would be "hold". Eventually......eventually......the population will spread north.

The Y-man

I think you own some units around that part of melbourne?
 
Thank you for your invaluable comments. After reading each and every comments, This is how I see Wollert.

Lots of Land and new estates makes it attracted to FHB. Lack of railway station and public transport is its biggest draw back so far.

Epping is going to become a very busy CBD with Melbourne fruit and vegitable market opening soon. New Costco opening soon. Northern Hospital expanding. Two new apartment building being built in High street. Westfield, Aldi, cafe and schools are all in Epping. City of Whittlesea is asking the State Government to fund the extension of the train line from Lalor Station to Epping North and Wollert. likely time delay of 3-5 years. Labours plans to expand eight kilometres of new duplicated track from South Morang to Mernda. A new station at Mernda and provision for additional future stations.

Epping North contains one of Victoria?s largest integrated urban developments, and eventually will be home to around 44,000 people including two medium sized activity centres in the VicUrban (now Places Victoria) site ?Aurora? and 32,000 will live in Wollert.

All of the above factors will be exacerbated within the next 5-10 years with the establishment of additional growth areas through Wollert and Donnybrook as part of the wider Northern Growth Corridor currently under State Government planning consideration.

So, Property value might grow in 5-10 years after train station are built and population saturates. Its good to hold if one is looking for long a term plan but in the short term Its better to sell and invest else where.
 
You've listed some pretty strong reasons to hold onto this one.

My question to you is whether the property is costing you money each week? What are the holding costs?

If the property is not costing you any money and it's been easy to rent out, then I don't think you should sell it. If you sell it, you lose an asset; and potentially a passive income down the track (rent will continue to rise with inflation, etc.)

One of the biggest regrets that I've read from people on this forum is that they sold a property that could've eventually done quite well. There are hundreds of posts.

This property is definitely a medium to long-term hold. I'd only consider selling if there are significant holding costs and this property is getting in the way of you moving forward with your investment goals.
 
Hi

Firstly well done on seeking some advice!!

A new property in Epping can be challenging because their are some areas near by that have new land releasing "eg; Wallan or South Morang".

I have honestly conducted a few valuations for properties in the same area as you and most vals have been coming in the same price they bought the property for.

Its never an easy decision to sell something when you are not gaining anything from it but to be honest if you sell a underperforming assest it might open up other avenues.

Before selling talk to your account and see if you two can crunch some numbers.
 
You've listed some pretty strong reasons to hold onto this one.

My question to you is whether the property is costing you money each week? What are the holding costs?

If the property is not costing you any money and it's been easy to rent out, then I don't think you should sell it. If you sell it, you lose an asset; and potentially a passive income down the track (rent will continue to rise with inflation, etc.)

One of the biggest regrets that I've read from people on this forum is that they sold a property that could've eventually done quite well. There are hundreds of posts.

This property is definitely a medium to long-term hold. I'd only consider selling if there are significant holding costs and this property is getting in the way of you moving forward with your investment goals.

I had Three bad tenants. They broke the lease and one left the mess which bond money just covered. I had three months without rent.Current tenant seems alright so far. As its an IP, I'm on interest only. So I'm break even. The only good thing is I get depreciation and anything that I can claim on Tax.
 
Firstly well done on seeking some advice!!

A new property in Epping can be challenging because their are some areas near by that have new land releasing "eg; Wallan or South Morang".

I have honestly conducted a few valuations for properties in the same area as you and most vals have been coming in the same price they bought the property for.

Its never an easy decision to sell something when you are not gaining anything from it but to be honest if you sell a underperforming assest it might open up other avenues.

Before selling talk to your account and see if you two can crunch some numbers.

I had fix loan for 2 years which is coming off this April. I have to decide to hold or sell by then.
 
If you sell it, you lose an asset; and potentially a passive income down the track (rent will continue to rise with inflation, etc.)

I don't necessary agree with this statement. Yes, rent will increase however it will depend on the supply in the area and also you need to maintain it to a high standard in order to compete with new stocks coming into the market
 
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