I have an investment property in Bundamba near Ipswich Queensland and am wondering if it is ever going to go up in price.
We were sold into it by a large investment company in Brisbane who have never delivered any promises. It was purchased for about 360, 000 plus costs so close to 400 grand. If it went on the market we would be lucky to 330, 000.
Do you see any advantage holding on to this?
Hi Aidan
Welcome aboard.
How much is it costing you to hold on to?
Is there any scope to add value to the property? I assume not.
Are there any indicators of future growth in the area?
Taking a $70k hit is tough – but if the property doesn't look like it's going to experience any growth and is costing you to hold onto, then getting rid of it could be a good option – but I have no idea about the specifics of your situation, the property or the area.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Just wondering how long you have had the property? Is it currently rented? What is the rental demand like ?
what is the name of the company that sold you the investment I assume it was off the plan?
Hi,
Yeah we have had the property about 3 years. We had to change real estate agent before we had good regular tenants so it is currently being rented about 320 a week.
Yes it was off a plan and the name of the company was Premium finance in Brisbane. It is a 4 by 2 in Bundamba near Ipswich purchased for 370 plus stamp duty etc.
It would be lucky to get 320 at the moment. I really have no idea if the area is going to improve or get worse. We live in WA so have often wondered sell and get another one in a better area or hold on.
Hi Aidan,
The last three years (in general terms) have been pretty average in many areas – so take the so-so performance of the property with a grain of salt.
If you do sell you'll crystalise your losses – can these losses be used to offset any capital gains you may have. Note I not advocating selling a performer to neutralise an under-performer. It just may be you had some plans to sell an asset that is increased in value.
I don't know the area nor do I have enough information about your overall situation but sometimes selling and buying in the same market, albeit in different states, is not a bad option. From my point of view selling, crystalising the loss, and stepping out investing altogether would be counter productive to what you initially set out to achieve.
Looks like the property is also costing your a bit to hold annually. If this is the case the capital loss will hurt a little less because of your annual cashflow savings.
Hope this helps.
3 years ago everyone thought China would boom for 10 -20 years. It's all over I'm afraid. We're in the bust phase now and it's going to hurt because this is a global bust underpinned by central bank printing which will prolong the correction. My guess is we could be in for a long period of stagnation at best and depreciation at worst.
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