Hold or sell in Christchurch?

Our Experts Answer:

With the properties being negatively geared you probably need to start by figuring out how much they are costing you from an annual after tax position. Then compare this against how much you are going to lose in agents and overall sales costs. It potentially is worth talking to both a property manager and a valuer to assess what additional rent and value you could get by tidying the properties up. Also ask the valuer their impression on whether second hand property values may decline. I am not an expert in the Christchurch market but was under the impression that both values and rents were increasing overall. Thus it may be a case of you still getting price increases rather than a decline in the short to medium term because of the lack of supply which should continue for a while with the building stocks being so depleted.