i can’t wait til theres a cap on how much property people can own
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No real need to cash in for me. We have paid off nearly all money owing and they earn us a decent rental return (1 is a lemon currently though).
Perhaps one day but no signs of anything crashing so I’ll hold for now unless something better takes our fancy
For now.
Sooner or later, someone will make a squillion off it.
Which is why I think it may well be worth your while to speak to someone - surveyor? solicitor? who specialises in subdivision.
Sell enough to buy your next place. Hold onto another bit.
You don’t want to sell it all now, and watch some planning/zoning rule change immediately and someone else make $100M developing it.
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That is always in the back of my mind. We sold our old house in Windsor, Brisbane to buy this place but I always wonder if I could’ve held onto it and buy here. It is now worth over double what we sold it for but the debt would’ve had me at breaking point.
Same as now…I realise the potential value but my wife is about to be out of work due to injury and my eldest hits high school next year. Income will drop and expenses will rise. We refinanced last year to ensure all debt can be covered by my wage but it doesnt leave much extra.
Just wondering if the ongoing pressure of maintaining what we have and the life we try to give our kids is worth holding this place for now or “cashing in” to make life a bit easier. Obviously we would have to buy back in to the market but if we could do that, debt free, and possibly get an investment property as well…
There will always be an “if only” factor regarding selling property as the value will only keep rising (in most cases) but is now the right time to try?
Splitting the block is certainly a consideration but the cost of that up front could pose an issue.
Yep. On the face of it, definitely worth exploring the splitting. (Although I have no idea how that really works with a bushy type of block: worth finding out.)
Keep in mind subdivision costs are only going to be temporary if you’re putting it on the market immediately.
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What HAP said.
I’m far from an expert so don’t listen to me, but please speak to someone who is an expert before you even consider offloading it. You could be in for an absolutely gigantic pay day years from now and you don’t want to miss out on that if you can avoid it.
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Except there is not a huge yield on much property is there at current valuations and the future cashflow can’t be expected to rocket up(I can’t see anything to fuel it)? If anything you would need to start discounting it.
I’ll leave capital gains tax to the side, because well that’s the same with any investment.
But there was a slump the year before. Call it 3.7% average over the last two years.
Higher than normal, but not that remarkable given we are clearly still affected by COVID supply problems.
This is a question that needs to be answered by individuals according to their circumstances, but in your world of runaway inflation it’s not a bad thing for the rent you’re receiving to go up and your existing mortgage to be effectively slashed by inflation.
And it’s easier to negative gear and save tax when rates go up!
(Not saying that last bit is logical, but we know a lot of people consider a dollar not taxed to be more valuable than a dollar earned.)
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Nationally I’d like to know how much rent inflation there’s been.
Obviously a lot in the regions.
It sux for renters and would be 1st home buyers that’s for sure.
Genuine question from the stalls, would it be possible to index rent hikes to wages growth, excepting properties that have been substantially improved (however that is demonstrated)? Theoretically, of course - no major party would entertain the idea.
Where else would you suggest investing the cash? Unless you were in the position to use it for something in particular, then the profits from selling an asset would simply need to be re-invested elsewhere which wouldn’t necessarily be as secure or returning as much. Many people keep investment properties to maintain a regular income in retirement & then plan for their kids to liquidate the estate after they die. Some like myself have investments as part of their self managed super so you can’t simply cash in & spend it.
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Mix of well capitalised equities and fixed interest products right now probably.
Something liquid. I don’t think there will be a better sellers market in property for 5 to 10 years at least in Sydney and parts of Melbourne. Certainly in areas of south east Queensland.
Rent is linked to the market, supply and demand. In the last two years we’ve had to drop the prices significantly on a large number of properties in our client portfolio, others we’ve extensively renovated to keep rents in line with the market. It’s not something the government needs to involve itself in IMO.
What they could do is make it illegal to accept more than the advertised rent. That’s the thing that really hurts those in the rental market when things hot up.
yep i would be more inclined to invest in melb / syd apartments than a overpriced tassie unit.
Thanks for the reply. I agree it would be better if government weren’t involved. But surley this bit has an influence on average rents, inflating the market?
And yes, is linked to the market, but not so much people’s capacity to pay?
Isn’t it illegal now?
As mentioned up thread we recently had one of our properties vacated and people were offering our agent up to $250p/w over the advertised figure and she told me it wasn’t permitted. Damn, I’ll have to give her the flick 
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withdraw the property, jack up the price then accept the new offer.
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They are in there now and we are happy with the price. If it is vacated again we may look at increasing the price
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