Well guys it’s time for me to seek some friendly advice. I’ve got an investment property (eastern suburbs of Melbourne)in partnership with family members that we have been renovating with a view to selling on completion. We needed to acheive a certain price to breakeven and at this stage (3 months on the market)we have got close, but no cigar as they say in the classics. I guess the decision before us is – sell and make a loss now, but get back into the market and make some money somewhere else OR hold the property, find a tenant and get the rent and depreciation benefits to help meet our repayment obligations, and sell when the market picks up. It is a good 3brm house in a good area. Has anyone out there been in a similar situation and have some relevant advise for a couple of first timers? []
I’m sure people will have an opinion re renovations and costs etc, but what I would like to hear is comments about the sell or hold options before us? Alternatively, is there any other options?
Hey Gus,
Tough one to call. Do you walk and call it a learning experience that you are much wiser from or is it the kind of property you want to hold. How does this fit with your investment goals ? Do whatever brings you closer to your desired goal. Remember that if you are looking at break even you could wrap the property and sell at a small premium to market enabling you tomake a profit out of the deal.
Hope this helps.
Enjoy
AD [:0)]
(Andrew)
“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
I’d recommend, if you haven’t already, doing some research on selling the property via a “wrap” or a “lease/option”. Using either of these two options should get you into a positive cashflow situation now.
Thanks for the feedback. With regard to wrapping (which I have never before attempted, but want to learn how), is this ideally suited to homes at the lower end of the capital value continuum – say under $200K? The property in question is priced to sell around the mid $300K mark? Does the price tag make it prohibative to do a wrap deal?
Gus[?]
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