For those of you who have owned a house and sold OR owned a house and rented it out and kept it as an investment property, I would like your opinions and knowledge about Pros and Cons.
We are moving. We have just built our own home. Been in it a year. We are relocating from FNQ to Brissie. Hubby got a transfer (through our request) because we felt we needed family support now having our first bub and no other family around, and for job/study opportunities for me. (We/I feel for our relationship to survive we NEED that support right now). Family support will help ease the childcare financial pressure too as mum can help look after bub 1 or 2 days a week while working/studying.
We have been away for 6years. We always thought we would return to Brissie, but then early last year thought we would not get a transfer any time soon, took advantage of the first home buyers grant and seized the opportunity.
We both LOVE living in Cairns. It was a hard decision, but either way now it is really too late to change our minds. Not that we seriously were going to.
The market is bad for selling. Looks like we are barely going to 'profit' from the cost to built by the time you factor in $11000-14000 for real estate commission and advertising. We were hoping to have enough profit to go towards a deposit for the next place (which if we sell, would not be for a few years due to the small amount we could get for the house).
Problem: Due to the estate not being finished but near the end, people can still build which is cheaper and would not want to pay min $20000 more for an established home. The Real estate in the estate said if we could hold on to the property for another 12mths, our return would be better because a) there would be no more blocks for sale like ours being the most affordable type of establishment to buy in the estate, and b) the market should hopefully pick up.
To sell the house we would be losing out on the benefit of the first home owners grant, therefore making the next house harder for us to buy as we would have a lack of deposit. And would take 3-5 years to save. So the issue of selling is about not making a good enough profit by the time you factor in other expenses from the sale.
To rent the house would be good. The original idea was to rent out the place for 12-24mths while I complete a Post Grad Study, but currently, our finanical situation doesn't allow room for movement. If interest rates go up, it will hurt. If we don't have a tenant 100% of the time it will hurt. The costs of maintaining the property through rental agency and any other things which would pop up as well as paying our own rent in Brissie and the Gap between our renters and mortage would probably be a strain.
If I am studying I will only be able to work part time so renting out our place we would not have any buffer income as we would if I was working full time it would not be so much of a problem.
As i said, we originally wanted to hang onto the property to return back to it in a year or two once I finished studying. But thinking it is better to cut our looses (emotional attachment )
So, what are your experiences of selling or keeping a house as an investment property, and what do you think is the best option.
Is keeping a rental property too much of a drama and hassle and should you only do it if you are 'comfortable' financially?
What are the 'hidden' costs of having a rental property???
We have spoken to mortgage broker about the situation, we both think (if I am still only work part time and not having 2 full time incomes) then keeping the property as an investment is not the best idea for us financially.