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Do you have any equity in it? you could try selling it and helping a buyer out with part of their finance using that equity, charging them a couple of percent over the market rate, and spreading payments over a time frame that works for you both (you might also be able to charge a slightly higher price for the property). It would work with a buyer who couldn't quite stretch to the full amount. It might help turn a negatively geared property into some positive cashflow for awhile for you while you wait for the market to pick up more, or decide where you are going to buy.
By the way, we had a lemon in NZ that was brought as a PPR, but turned in to a second investment property when we moved to the US. It was costing us over $8000 a year. We just cut our losses and sold it. Our money was much better off being invested for a good return, and it was going to cost us far more than we were going to ever get in capital gains.
Thanks Darryl
We nearly brought a property like this in Capalaba (Redlands Council). The original house had an extension built on to the back of it. The two living spaces each had their own kitchen and separate entrance, and were not accessible to each other. It also had a non compliant fire wall between the two areas, and the two sets of tenants were on the same water and power meter.
After doing due diligence we decided against buying it, but the other option if we had brought it, and received a show cause notice was to put a door in the common wall, then rent it out by the room. Is this an option for landlords in this situation?
Cheers,
Kylie
