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Is it time to sell?

Discussion in 'Real Estate' started by K_veg, 6th Dec, 2015.

  1. K_veg

    K_veg Active Member

    24th Jan, 2011
    Milan, MI
    Looking for some opinions. I have an IP in South Perth that I bought in 2011 for $420k (2 bed, 1 bathroom unit, in a complex of 12). Current value is still $400k to $450k. It's never been vacant, normally renting for $400-$420 per week. The current tenants asked for a reduction last time they renewed the lease and this time they only renewed for 3 months, so I think they're about to leave.

    The rental market here in Perth is terrible, so I'm worried that it will sit empty once the tenants leave. Also, there are 2 high rise apartment blocks currently being constructed in South Perth which I think will cause an over-supply in the area.

    So... is it time to sell? The unit is paid off, so it's +ve cash flow no matter what rent I get, but I'm worried about prices going down further or it sitting empty. I'm wondering if I'd be better off selling and investing the money in cash or shares.

    What do you all think?