$430k to $375k drop – please help

If you need to sell drop the price. If the repayments aren't killing you, hang in there at $370. Can you do anything to make it more desirable? Sell the dream. A bit of bling. A bit of paint? Rent/borrow some classy furniture. Some nice wall hangings. Make it look like a display home. If you have tenants get rid of them. Some tenants that don't want you to sell it will leave it looking like a tip when people come to see it.

Which area is the unit in? i might be intrested?

you have to look at the $338 extra your paying in rent thats $17,576 p/a. if you have owned for 5 years you have already lost approx $88k in interest today the unit owes you $518,000 if you sell today you loose $150k if you hold for 5 more years it will owe you near $600k do you think it will be worth $600k in 5 years. just one way to look at the dollar side of things

Wow Another useless post by ,mdjsnhfehjgirehjrewbfkjrsbukk or whatever it is.
And yet another PROPERTY ONLY GOES UP reference that seems to only ever come from gloomers themselves.

Back to the question

To me you have two options. Drop it significantly and pay of the remainder ASAP. By that time the market may be in better shape
Or 
Can you refinance. Interest only on $370,000 should be a lot lower than you a currently paying. Just be ready to see no growth for a while but if you are thinking long term like you should be anyway. Then its value in 10 years it what you will be concerned about. It may not be an ideal situation to be in but you have to do the best you can with what you got. Hope you find this info better than the trolling from the bottom feeder above.

The thing about this property is that the rent equals to the rule of thumb for the current value. Each 100K of value should, give or take, cost $100 PW. If that rent is sustainable (which depends on unemployment levels, CPI and all that) then 375K may be the true value of the property. For the thread starter, this is something positve, atleast, meaning that, as bardon stated, the property mentioned may have lost all that it is going to.

The other interesting thing is that it was purchased in 2003. Imagine how much similar places went for in 2005, 2006 or 2007!? No matter what they went for, they are probably all worth around 375K. A return to 2002 prices was what I expected from the correction and using this property as a yardstick, it may work out more or less correct. True it is one property, in one area, but historically Sydney leads the curve in Australian property prices.

What you don't say is how old the property is – if you bought it new/off the plan then you have had the benefit of huge depreciation allowances (which need to be added back to the sale price), you can't have your cake and eat it . You may need to face the reality that the property is no longer new and has depreciated by a) the developer's margin & the builder's margin b) loss of it's new status etc. New property does not perform well in the short term especially in a falling market.

Property is a long term investment, 4 years is not long term, in fact it isn't even the length of a property cycle. Wait another 3-4 years and the property will be back in the same position in the cycle as when it was purchased. (but not necessarily at the same value).

On the bright side, you should be able to carry forward your capital loss indefinitely (to offset against future capital gains).

So D,

What are you selling?

hi, do you dare do the unthinkable? There's option 3 – look for the best property you can get in Parramatta at this point in time. There may be some desperate seller & you can get a +ve reply to a lowball offer.

It's dollar cost averaging in property investment.

And I may suggest that 5% yield in property is quite a good return. That's why few people want to be landlords.

Long ago, I bought a mistake like you. $166200 rented for $400 a month. In hindsight, I should have sold at a loss [$105000] then I wouldn't have had to stress out. I could have bought a house 2 years later at the rock bottom of the market & then sold ten years later at the highest point.

Note: could have, should have.

Point is: I don't know what I would have done, most likely NOTHING. In which case, the result would be nothing. No debt, no house, no worry.

As it happened, I wore myself down to repay a huge shortfall & ten years later, I sold for $310000.

It's a process called forced saving.

If you sell your IP, do you have the discipline to pay what it costs you now to own it?

By all means, sell your IP if you have a better plan to forge ahead faster but remember you lose tax advantages if you use the proceeds to pay down PPOR. Why not do both concurrently? Hold IPs & pay down PPOR at the same time.

Sorry only you can make the decision. The rest of us just throw words at you to confuse you further!
KY

The chances are you have to drop the price to meet the demand… if the unit on the top floor sold for 350k.. Well I guess that you have to drop it to match A$350k (at the most)….
I hate to say that.. despite falling interest.. but it is still very difficult to sell….only agents that told you about bull market when interest falls. Our CPI > 5% and economic growth is sluggish with unemployment rate is heading towards 9%…AND of course we HAVE LABOUR goverment… which make it worst.

Hi, work  in Parra, and there was a lot, buildings going up then.

Can you tell us the outgoings ????