Rental property in Auckland - Should I sell

[David Hardman]

Hey guys

I'm living in Sydney but own a rental property in Auckland (Takapuna)

I bought the property about 5 years ago for $NZD265,000. I've been told in todays market I could get $NZD500,000 for it.

Its been rented out solidly over the last 5 years and has given me no problems whatsoever. The house is in good nick and needs no money spent on it.

The rental income pays the bulk of the mortgage (200k left outstanding), insurance, rates however I normally have to subsidies by around $1500 PA

My mortgage rate is currently fixed at 7.3% but comes off this rate in Feb. ASB floating rate is currently 9.5%. I could fix for a further 2 years at 8.3%

Many are picking we are at the end of the interest rate rises and because of this the NZD may weaken over the next year or so.

Here is an interesting article

http://www.nzherald.co.nz/section/story.cfm?c_id=3&ObjectID=10362292

I have made a nice capital gain based on the Auckland house prices boom and also the kiwi strengthening. When I bought the house the AUD/NZD cross rate was around 1.30.. its now around 1.09.. so I've done quite well on the currency front as well....

With house prices peaking (???) and the NZ dollar possibly weakening (???) maybe now is the right time to sell.


???

[shasta]

I believe it is a good time to sell, but i guess it depends on what you want the money for & how quickly you need it.

We are perhaps 6 months away from the "anticipated" slow down/adjustment in the property market, although Auckland should in theory be a good investment in the long term.

Our high dollar should be the catalyst for this if/when it does drop.

Perhaps you could move this thread to the Property one & get the views of the more informed, as i dont own property nor live in Auckland!

Regards

[David Hardman]

Sorry - Should of posted in Property Froum.

Reply here -

http://sharetrader.co.nz/topic.asp?TOPIC_ID=22740