Hold or sell property?
Question from Jennie updated on 13th August 2014:
My sibling and I have inherited a two-bedroom house in Wellington with a registered valuation of $530,000. Market rental for similar properties is approximately $400 per week. Neither of us have debt and our priority is retirement saving. The house needs at least $10,000 maintenance to be ready for sale or rent. It is in a good location, but value has grown little in last two to three years. What is your advice on the merits of keeping property as a rental or selling it? We would likely employ a property manager if we went down rental route.
Our expert Ron Hoy Fong responded:
Stay with the property and hold it for retirement. Over time it will always continue to increase in value keeping up with inflation and providing you and your sibling a passive income. Renovate it to increase the valuation and its street appeal for better tenants, also to maximize the rental income.
See a mortgage broker who can help you raise the funds needed to renovate and perhaps an extra amount to use as deposits for an another one or two investment properties.
If you are unsure on how to invest in properties or need to learn more, I suggest joining your local property investor association or get yourself a property coach.
Ron loves to share his passion for property and his coaching course provides one-on-one mentoring and support that will empower you with tools, strategies and valuable insights so you can achieve investment success and become a property master.