Grey Lynn dilemma
Question from Miriam updated on 27th April 2018:
I own a property in Grey Lynn in Auckland which now has a CV of $1.9 million. It is a five bedroom house on a large section. But I have been renting it out to students for many years and it has seen much better days. It would cost a lot to fully renovate it. So would it be better to sell up and several other properties in another city with the proceeds? Please advise.
Our expert Kris Pedersen responded:
It depends on your personal requirements from the investment. Grey Lynn is obviously a blue chip suburb and, from a long term point of view, should have solid growth in regards to both property prices and rents. If it is in poor condition then this will be reflected in the sale price anyway. If your circumstances mean that the renovation is really outside of your budget and that cash flow is important then selling up and reallocating the capital elsewhere could make some sense.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz