Currently I own a freehold Strata townhouse which is not rented out, needs a make-over and is worth about $380,000. It's within 5k's of the city and I've owned it for about 25 yrs. Regretably, I can't say that I've actually enjoyed having owned it. Both my family and I have lived in the townhouse and we've experienced everything imaginable from having disagreements with our strata managers, other owners and tennants to actually having to take several matters to Court.
More recently we purchased a Torrens Titles house and are much happier. I feel sorry for anyone contemplating owning and living in a Strata Titled townhouse for any length of time.
The reason why I've decided to ask for help from this forum is because I want advice on what I should do with the townhouse. At this point in my life it's becoming an increasing burden and my health is suffering. I need some creative ways of geting out of my present predicament. I do however think that selling the townhouse (regardless of any longterm rental gains) may be my only way out. (please tell me if you think I'm wrong)
In saying this – it's virtually impossible for me to visit the townhouse without becoming anxious so any kind of make-over work would have to be carried out by persons other than myself. I am actually a building professional but I think that the additional worry of having to deal with some of the trades would certainly give me a heart attack.In closing – I must admit that I was rather impressed with a report I saw on "Hot Property" (Channel 7, Sunday night) which showed how potential home buyers could buy their home through Rich Otten if they did their own make-over and later took ownership of it in full. I thought that this way of tackling the problem may suit me but later discovered that WRAP's were illegal in South Australia.
How do I get out of my present predicament?
MOOLAH
Hey Moolah,
The good news is that if you get out now just as is at market value, over 25 years ownership you'll walk away with significant profit/growth anyway……which is not yours unless you do one of two things – 1) Sell it. 2) Borrow against it.
Mate, if you are doing (or believe you may do) more damage to your health and or emotions by keeping the property, it is not worth any more stress or anxiety than you may already have. No matter how ggod the property is (and yours sounds like it is not anyway) the wrong memories with it can stuff it up all together regardless. Sounds like you've made up your mind. Move on. What does that Nike add say again? (Come on now…'Just do it' Remember? ) All the best – there will be plenty of other options for you down the track. Cheers. If you need to sell it to finance the new purchase, and can't face the thought of a make-over, you could;
a) hire tradesmen to do it for you and supervise the project.
b) sell it as is for whatever it will fetch and walk away.My immediate thought was that you could turn it into an I.P and have it managed. Wipe your hands to a degree. The Property Manager looks after all the problems for you pretty much.
You can still access the equity in it to finance the new purchase as well, but keep in mind tha the finance will be used for your new PPoR, and therefore the interest is not tax deductible.
At least you would have the rent offsetting the loan payments on the new PPoR, and you will have 2 properties going up in value over time.
Thanks v8ghia and L.A Aussie for your advice. I'm sorry I didn't get back to you both sooner.
If this IP is having a negative impact on your health, sell it….
Just sell it and smell the roses.
Maybe consider a lifestyle IP
I bought at http://www.brinkleyresort.co.nz (ski, fish, golf)
It pays for itself in winter and i can use (or give to friend) anytime for free.
Maybe a seaside 'managed property' which you can use.
Better health option
) All the best – there will be plenty of other options for you down the track. Cheers.
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