Hi, This is my first post here. Someone suggested I ask here for advice.
Basically I have a property that I want to sell, we originally bought it as our first home as rentals in the area were sky high for crap. We then moved when hubby was transfered and bought again etc…anyway, now we want to start a business and want to sell our now investment home using the proceeds from the sale to start a business.
The property was earning 6% pa in rental and those tenants just moved out, we had never put the rent up, so are now upping it from $180p/w to 200p/w which will yield a 7% return.
Really not sure whether to sell it or hang onto it as the area is set to boom soon with mines going in throughout the area, we have already seen what one mine did for a tiny town just 1/2 hour or so up the road, houses went from 80K to 180K virtually overnight
. We already knew this, but hubby heard it again on the radio this morning (maybe I should google to find out exactly when the mine near my house is set to start…lol), so now we just don't know what to do. Apparently where we are now (also a mining area) is set to fall as the miners move to the new mining areas which is where we own the house. Really stuck here as this was the best invesment property we had, the other one which we just sold was only earning about 5% pa compared to this one is was not a good investment.Any ideas on how to either sell it, places to advertise it that th REA might not advertise etc….or advice on if we should even hang onto it and forget the business for another 6 months or so?
TIA
O.K so don't know if i'm even working out the %pa correctly, the way I worked it was the house price ($148K our asking price) then I worked out 6% of that which works out at $8880pa which is $170 per week rent and we were getting $180, hopefully soon to be $200. Is that right? Or do I need to add in rates, insurances etc…..because if i'm going to advertise it somewhere as returning 6-7% I want to make sure I have done it correctly
I have searched and found out the new Narrabri mine has put forward the environmental impact study for the public to view, so am assuming the construction of the mine will commence soon once it gets gov approval…..geez….why do I do this to myself….argh!Please if anyone has any advice….I really need it right now
Shouldn't your asking price reflect values ie why sell at a 7% gross yield if the market is 5%. No point leaving too much money on the table.
So you mean, why not sell it at a higher price?
The price we have it listed at is very close to a bank valuation we had done 2 months ago, would hate for a buyer to come along and get finance knocked back because it didn't value in.I would try keep it and use equity if at all possible especially if a boom is on its way.
Luke Taylor | Hope Property Investing
http://hopepropertyinvesting.com
Email MeProperty Support,Strategist and Buyers Agent
Hello mum2 five
It sounds to me as if you would be better off selling the house you are currently living in if you see that the prices are going to fall due to people moving out of the area.
If your planning to stay in the area and start a business why not rent for a while and see about buying again after the dust ( from those leaving
) has settled. Your original house is giving a good return and you think that a small boom is coming so why sell that?Just another option to think about.
Cheers
ElkaWe are currently in a rental and won't be buying here most likely unless the prices do drop drastically
, our other house is also for sale and not in a good rental area because it's a 10 minute drive out of town and no-one wants to travel 10 minutes with fuel the way it is
. We already knew this, but hubby heard it again on the radio this morning (maybe I should google to find out exactly when the mine near my house is set to start…lol), so now we just don't know what to do. Apparently where we are now (also a mining area) is set to fall as the miners move to the new mining areas which is where we own the house. Really stuck here as this was the best invesment property we had, the other one which we just sold was only earning about 5% pa compared to this one is was not a good investment.
) has settled. Your original house is giving a good return and you think that a small boom is coming so why sell that?You must be logged in to reply to this topic. If you don't have an account, you can register here.
