Forum Replies Created
Hi Foundation,
No we never got an independent valuation. We had about 5 real estates give us valuations and from our own research we didn’t think they were too far off the mark. But it didn’t take long for the vendor conditioning to kick in as we were being told that the market was dropping fast and that we had to drop our prices accordingly. Although surpisingly we did have one offer but the real estate advised us not to accept as it was too, the buyers didn’t give us a chance to negotiate as they apparently stormed out of the real estate office annoyed that we didn’t accept their first offer!! Anyway thats a whole other story. I guess we have learnt from that experience and glad now that we haven’t sold up.
Pinny
Hi Terry,
Yes you are absolutely right. I realise now that I have been too focused on returns and not having a balanced portfolio. Keeping this house and borrowing against it including some higher yielding CF+ properties (hopefully in growth areas) is what we should be doing.
Whilst I wouldn’t be surprised if the value of our IP continues to drop in the short term I have no doubt that if we hang on to it that it will see good growth again future.
Thanks again for everyones advice. I have learnt alot from our discussions and feel now that we are making the right decision by keeping the house as an IP.
Pinny
Hi All,
Thanks so much for your responses.
To answer some of your questions. We sold our other IP and have used the funds to pay off our new home and put the rest aside to invest in further IP’s. We are under no pressure to sell our current IP. We just weren’t sure what the right thing was to do (in terms of maximising our returns)…
If we sold this IP we would use the funds to purchase further IP’s and maybe a managed fund.
But we have taken your comments on board and have decided to sit on this one for the longer term…. and using the equity for
Terry, you are right, $285k over 6 yrs isn’t scary. But to relatively new investors like us it can be scary watching it drop from $590 to $485 over 18 months.
Derek thanks so much for your advice. Rest assured I am also reading up on other material. There are so many different opinions that it can be hard to know what the right thing is to do. I guess as you said it will depend on what our circumstances and goals are.
Pinny
Hi Derek,
I’m not sure we had a plan for the property when it became an IP. It sort of just happened by default because we couldn’t sell it. It is in Melb in a good area.
I know property investing is long term but in Steve’s newletters he seems to be recommending that people sell underperforming assets now (ie: before further interest rate rises). Isn’t this house underperforming given the cash on cash return and return on investment?
We recently sold an IP to free up cash for further investment opportunities that we are looking into.
I think you are suggesting that it wouldn’t be such a bad thing to hang onto this house and draw on the equity for further IP’s.
Pinny
Hi guys,
Thanks for your reply.
Thanks for the email Kerwyn I will have a look and get back to you.
Westan thanks for the info, how can I get in touch with Minimogul. I’ve seen some of her reply’s to other mail. Yes please send me any info you have to my email.
Thanks heaps.
Razza
We have 14 fertile acres and only 4 horses. Unless you want to end up with a complete dust bowl the land simply won’t cope with anymore. The standard is one horse per 5 acres. I simply can’t imagine how you could consider 20 horses let alone 30! We rotate the paddocks and handfeed our horses daily. Before buying our own property I agisted my horses for many years. Maybe things you need to consider are council regulations. Is there a max number of animals allowed to be kept on a certain land size? You’ll need some sort of contract for the agisters to sign and a debt collection process when they don’t pay. And what about if they fall out of love with their horse and abondon it on your property? I’ve seen this many times as I am also a volunteer representative for one of the horse welfare organisations in VIC. What is your management process for any owner that fails to care for their horse adequately? In VIC as the land owner you are liable for any neglect/cruelty to animals kept on your property. Have you thought about buying dung beetles to help you manage the poo problem? Are their many trees on your property, if not have you factored into your expense errecting shelter sheds? Ours cost $2,000 per shelter shed (one in each of our 10 paddocks and that was just materials). For welfare issues alone, I would seriously be concerned if anyway had 40 horses kept on 8 acres as much as I would with 20 horses on 14.
