I had two duplex's in Nelson Bay NSW, I sold the first one last year for $355,000 but for some reason I cant sell the other, it is by far the cheapest and nicest 3 bedroom two bathroom Torrens tittle duplex on the market in Nelson bay. After numerous price reductions it is now sitting at $279,000, an absolute steal. I would love to hold it for another 2 years to get back the same price as the first one however as I am young and recently married we need the money to setup our home with furniture and payoff bad debt. The first one I sold is renting for $300/week and the second would achieve the same.
Any ideas? please help.
Cheers Michael.What about offering some form of vendor finance – you lend them the deposit and/or pay their stamp duty etc.
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
gees i recalll when we got married, I had a house, he had some city property. and some rural property…I remember how we both decided we wanted no debt.and when we sold the lot we still had this 'massive mortgage of 60k hanging over our heads"
We sold it all to buy one really nice house. Now if only I knew then what i know today…….
Dont we all say that.However that probably isn't your situation. Is it really essential to sell now? It must be aggravating knowing how much you got the other one for. If you could possibly take it off the market for six months and then put it back on. People begin to think there is somethign wrong with a property if is keeps the 'for sale' sign too long.
best of luckSuck it up, knuckle down and spend NOTHING for a year or two, live on second hand furniture and no restaurants and so on, pay down the bad debt, cut up the credit cards, hold the property and get a tenant in there.
You can convert the loan to interest only to ease the cashflow strain (if you haven't already done it) and then pay the minimum off the loan each month and divert as much cash into the bad debt loans as you can.
Or lower the price even more and cop a loss.
I know what I'd do.
Hi Michael,
One of the exit strategies – https://www.propertyinvesting.com/forums/property-investing/general-property/4323462 as recommended by Qlds007 is to consider RentTB so it'll create some positive cashflow and ease any repayments required.Get to know how the Nelson Bay market is and if sydney's cycle will effect it in next 12 months etc – i mean if you waited 12 months and then people were willing to pay $380k (just saying) in 12 months would you kick yourself if you sold it for $275k today?
What's it valued at out of curiosity?
Hi Michael
PM me the details. I might be interested.
Cheers
K
Something I've been thinking about.
What if you sold a 'share'of the proprty to someone else, not a share of the title, but a 'share' in the value. Then baught it back off them at a later date (Obviously if the propert doubled, there 'share' would double). Draw up contract of course. Something along the lines of. "purchasing 1 share for the same value as ?% of the market value of property on any ven day….."
Might give you the cash injection you need or just turn it in to a cash positive invstment for you and the other 'share' holder to ease the strain short term.
Kind of like hedging.
I'd hate to you post an "if only" in12 months.
Another option. Can you borrow some cash money off someone else to tie you over. You might be surprised how willing people are to help. Have a plan to set out as to how and when you would pay them back. Even if you arrange to pay them back in ten yars with interest. If the property does what property has always done, you can sell it then, give the money back, plus interest and walk away with a tidy profit.
There's always options. Just a matter of finding one.
Congrats on the marriage.
All the best.
Gav H
offer to take a car boat or jetski as part payment ,on say 298k
accept the buyers claim that his or her 15 year old bmw is worth twenty grand
take it straight to the auctions and get seven for it
but you have helped them get over the deposit barrier (and pumped up the price to cover your loss )
assuming no one is too greedy the flat should still value up to proceed
(perhaps i should write that in caps )
perhaps you could cover your bases and have a real valuation done,so you know what figures you can work within
might even spur your agent into a flurry of activity ?
good luckAs silly as this may seem sometimes changing the wording and pictures in your advertising
makes the a differenceHold on to it if at all possible Michael. Nelson Bay is a great spot and that 279k reduced price is not healthy for your future prosperity. The growth will come soon to that area. Rent it out and change your loans to interest only.
Otherwise if you have to, you can always sell it with a tenant in place. Not many places on the coast returning 5% so one would expect it to be very attractive at even 300k or so.
Get over this stale period and review your plans.
Regards, Ian
You must be logged in to reply to this topic. If you don't have an account, you can register here.
