Sell or hold? New build investment property/FOB
Hi everyone,
Looking for some outside perspectives on whether I should hold or sell my property long term.
I bought vacant land in the Brisbane–Ipswich corridor and built a new 5 bed / 3 bath house on it (completed in Dec last year). Total cost ended up around $800k all in, and current market rent appears to be around $800+/week.
Originally this was intended to be my first home, but due to personal/life reasons (my partner said no because she doesn’t like the suburb — call me whipped if you wish), I did not end up living in it, so it has effectively become a long-term investment property instead.
Since April this year, I’ve rented it to a family I met who were urgently looking for housing. Because they were struggling a bit financially, I offer the rent to be around $150/week under market rent on a 12-month lease.
I currently don’t have much mortgage stress on the property because I funded the build primarily through previous investments and savings, which makes the holding costs manageable. However, I’m debating whether the capital could potentially perform better elsewhere (ETFs/shares/etc.), especially after factoring in possible future policy/tax changes, maintenance, management fees, insurance, and ongoing holding costs.
Since it’s now functioning as an investment rather than my personal home, having all my money tied to a single asset also makes me uncomfortable.
Current price estimates seem to be around $1.05m.
For people who have been in similar situations:
Would selling affect my tenants if they are under a fixed lease? I want them to stay the full term, if possible.
Would this still generally be considered a “new build” under current frameworks/policies for my future buyer? The dwelling itself has never been sold before — I purchased the vacant land and built the house through a builder. From reading the recent budget discussions and files, it seems like it still qualify as a new build.
Would it be attractive to buyers in the current market compared to other houses?
Would you personally hold or sell in this situation?
If you sold, what would you redeploy the capital into?
Interested in hearing different opinions rather than looking for validation either way. (But not looking for comments about replacing my partner thanks - I love her)
Originally this was intended to be my first home, but due to personal/life reasons (my partner said no because she doesn’t like the suburb — call me whipped if you wish), I did not end up living in it, so it has effectively become a long-term investment property instead.
Since April this year, I’ve rented it to a newly married couple I met who were urgently looking for housing. Because they were struggling a bit financially, I offer the rent to be around $150/week under market rent on a 12-month lease.
I currently don’t have much mortgage stress on the property because I funded the build primarily through previous investments and savings, which makes the holding costs manageable. However, I’m debating whether the capital could potentially perform better elsewhere (ETFs/shares/etc.), especially after factoring in possible future policy/tax changes, maintenance, management fees, insurance, and ongoing holding costs.
Since it’s now functioning as an investment rather than my personal home, having all my money tied to a single asset also makes me uncomfortable.
Current price estimates seem to be around $1.05m.
For people who have been in similar situations:
Would selling affect my tenants if they are under a fixed lease? I want them to stay the full term, if possible.
Would this still generally be considered a “new build” under current frameworks/policies for my future buyer? The dwelling itself has never been sold before — I purchased the vacant land and built the house through a builder. From reading the recent budget discussions and files, it seems like it still qualify as a new build.
Would it be attractive to buyers in the current market compared to other houses?
Would you personally hold or sell in this situation?
If you sold, what would you redeploy the capital into?
Interested in hearing different opinions rather than looking for validation either way. (But not looking for comments about replacing my partner thanks - I love her)