Advice Should I Sell My Sydney Unit

In a nutshell there is less effort involved for the agent if the place is offered cheaper, as it will likely rent faster. Don’t blindly drop the rent without confirming by your own research that it is necessary. If there is a lot of stock but yours is say the second cheapest already anyway, you’d think you’d have plenty of interest as it is

Price dropping is the one thing most investors struggle with. Yes, the last tenant was paying more previously, but what is the rental market doing now? How many tenants are making it to open inspections? Are properties leasing quickly in the area or is the market slow? If there is a lot of stock and yours is the second cheapest anyway… how long have the others been on the market? Longer?

A bird in the hand is better than two in the bush. Every week that goes by is potential rent in your pocket.

Why is there no interest? There are three factors to look at when a property is not leasing (or selling…):

1. Property: Does it present well? Does it need some TLC? What are prospective tenants saying about the property at open for inspections (your agent should be asking them and passing on the feedback)? Is there some small update you can make to push the property (replace the kitchen blind, do some gardening)?

2. Location: Has the location deterred tenants? – again, your agent needs to get feedback from prospective tenants. Not much you can do here but reconsider pricing to generate more interest.

3. Price: A drop in the market may mean that the previous tenants were paying more than market value before they vacated, but you're expecting to get at least the same rent if not higher because traditionally you should, right? I'm seeing this a lot in Melbourne and it's a difficult situation. A property is only worth what a tenant is willing to pay for it, so adjust accordingly.

If you don't your agent's assessment of the market value and trust their knowledge of the market – why are you letting them lease and manage your property? There are some great agents out there so take the time to sift through the crap and find someone who cares about getting you the best result!

If you're happy to stay with your agent, go and see the property and then do your own assessment based on available comparable properties, these are your competition. Whilst much of pricing is to do with the agent's experience in the market (hence I always recommend you go with someone who knows the area), you can get a good idea of what it's worth – just remember to be objective.

Ask for mid-week open for inspections to be held in addition to Saturday opens. Preferably 5:30-5:45pm depending on location of the property so that people can attend after work. If it's in close proximity to the CBD then 12:30-12:45pm so people can attend on their lunch break. If your agent argues with this – find someone who won't.

Sounds like you're on the right track to find what's suitable for your situation. If you do your sums and the selling costs won't eat too much out of your profits and puts you in a better position, go for it.

You could continue to try to lease the property on say a 6 month lease (or offer negotiable lease term) whilst marketing for sale to have some rental income. You'd then be pitching to both investors who don't want an empty property and owner occupiers – by the time it's on the market if you've got an owner occupier looking a longer settlement period could be arranged to coincide with lease expiry then give notice to tenants.

I am in Sydney and have a few IP in the inner west area, also I lived and fimilar many suburbs in the inner west.

which suburb is your property located ?

I can give you some thought about the suburbs.

there are some suburbs in the inner west are very easy to get tenant or sell proprties.

I see, I lived in Earlwood for a couple of years before.

you right, Earlwood is a bit less popular than Marrickville.

The NSW budget to end the first home grant may push up the price a little. It happened last year when the stamp duty concession end, many first home buyers rush to the market.

As you mentioned that this property is take away 100 per week and you just had your first child.
If I were you, I would sell the property.
just to take advantage of the first home buyer, then later on buy back to Sydney market once you back to work have a bit more cashflow.

you see negative cashfloww for 100pw and first your child are draining a lot of energy. If market go against you in the next 3 year. it's only give to be harder for you and you will face the same question whether to sale or not.  
Once you go back to work and have a bit more cashflow, then you have more capacity to move forword. 

just think about what you really want out of investment. 
investment should and suppose to deliver enjoyment not the worries. if you are really "hurting" financially and waiting for the unprodictable capital gain is going to be a chanllenging.

Earlwood is a first home buyers place, take the advantage of the NSW budget announcement.

I hope this is helpful

Well done!   When I saw the date I hoped you hadn't sold then.

Sydney is going gangbusters. I'm selling one next year as I think it still has some growth in it.  Maybe a few more if this keeps up then retire. Yippee!!!!