Steve McKnight recommends in todays current climate to sell marginal and non performing properties. I bought a block of lannd 3 years ago for 67,000 which now is worth $100,000. My loan for this land is fixed till end 2009 at 6.8%. Would this growth be classed as marginal? I just want to make wise decisions.
Hi Cyclist,
Like you, I read Steve's views and the same question came to my mind. Furthermore, your view on marginal might differ from mine.
Your example I would see as not being marginal.
You would have to form an opinion on the likly hood of future growth,…. to break even you will probally need the property to go up in value by $6500 per year to cover the interest and the rates and other holding costs such as slashing the grass,
If you believe that this property will grow in value by more than $6500 then you could keep it as an investment,…..unless you can find another investment that you believe will achieve a better return on your funds invested,
Thanks for input. Food for thought. Thanks. I reckon for me "it is performing " at the moment.
Hi Cyclist
Here is an investor definition for you.
http://www.investorwords.com/5651/marginal.html
You don't qualify, it's doing to well for you hehe.
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