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I love your show.
I have an investment property in Reservoir Vic which I bought for $611K at the peak of the market in Nov 2009. It's a red clicker brick home with a terracotta roof tile with wooden double hung windows (painted white) built after the war with some art deco features. It's in orginal condition on 650 sqm of land.
I recieve net rent of $1355 pm with a loan of $645K. It's costing me around $1k pm after negative gearing and the property is not growing by the same rate.
Should I hold as it's a great home in a good area (27 Acheron Ave - google it to view photo's) or should I rennovate it to improve the return? i.e update the kitchen and bathroom or should I build a unit on the back to improve the return? I dont want to sell as I wont get my money back in this flat market, if I can afford to hold for the say next 20 yrs, do you think that the property will grow by an average of say 2% pa and is worth holdng for the long term? Or should I sell as it's costing me money to keep it and take a hit as I want to save the $1k pm? I'm 42 yrs old and have time on my side hopefully for it to grow?
Thanks , Rob
Answered Saturday 10 November 2012I would love to help, but it is simply to complex to answer in this forum, if you really are stuck let me know via www.andrewwinter.com.au
Property ExpertAndrew Winter
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