Hi all. New to the Forum and need some help. I purchased a negitively geared investement apartment(1 bd) in St Lenards in 2002. Have had the property on the market for over a year in a bid to get my life back. No takers and the best offer has been $340 (last value of property was $40K in Oct 2003. With stamp duty paid $36K originally) Want to get this monkey off my back so I can get involved in the + geared property market. [blink]
Do you think this could be a good property to wrap, therefore making it + geared? Any suggestions greatly welcomed.
Braveheart
You might have to meet the market where it’s at and just sell it for whatever you can get.
Wrapping something like this would be very hard, but not impossible…Good Luck G7It may be possible to wrap, but the repayments would be much greater than the market rent on the place. But it can be done, and has been done in Sydney.
If it is on the market, you can offer the agents incentives to sell. eg, above $XX, they get an extra 2% commission etc.
Also, it is not clear from your post, what did you pay for it and what is it worth now – bank valuation. There is no use in selling at a great discount if you could simply borrow the extra equity and use that to invest in postive cashflow stuff.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Braveheart,
I can truly sympathise with you as I too am in a similar situation. My husband and I purchased a 2 bed unit in Hurstville in 2001 for 337k and have had it on the market for the past 6months and the best offer so far has been 308k. The unit is rented for $300 per week, yet this comes nowhere near the covering the mortgage repayments or strata fees which are almost 4k per annum. I would also love to sell yet can’t stand the thought of losing so much money. I am finding it a very difficult decision as to whether to continue financing this property or to sell and cut my losses. Sorry I haven’t offered any help but I guess it is reassuring to know that you’re not the only one wanting to sell a dud -ve geared property.Good luck Braveheart,
LisaIf you want to cut your losses and sell, drop the price until it’s off your hands…
It’s only worth what someone’s willing to pay. Sounds obvious, but it’s not always easy getting your head around it.
Cheers
roh dear guess thats happens when you try to make quick bucks. You bought in 2002 its been on market over a year & now your lucking out. PI isnt a short term fix especially if you buy at top end of boom & try to sell in bottum end. Its like others said you gonna just have to drop price till someone bites! [confused2]
Pepper
Have you read Steve’s latest book ? This looks like a classic example of not “meeting the market”. Have you considered identifying the reasons why the property is not selling ? And then coming up with an action plan to “remove” those reasons ?
Hey ho, Braveheart and Doyle,
We are also in the same situation. We have tried to meet the market and it seems we are dropping our price each month. I think our biggest problem is that the only people that seem to be buying at the moment are investers looking for bargins.
So, I think that there maybe quite a few of us out there.
Beck.
“You have to leave your mouth open for a very long time before a roast chicken flys into it.” Early Proveb.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
