We have an IP to sell in Adelaide suburbs. It is valued at about $210k, but it is tenanted until Oct 2005. It is a brick 3br renovated house on 500sm of land. Previous opens have not attracted any offers. This includes a set sale over the last 4 weeks with a range of $180k to $230k. Any ideas?
Raise the rent to 8% of purchase price, quietly slip the tenant the difference between current rent and inflated rent, then market it as a cashflow positive investment![biggrin]
Cheers, F.[fear]Alternatively, find out how much buyers are prepared to pay for the property, and make sure your asking price matches. If the REA is incapable, try sending one of your friend’s who has the ‘gift of the gab’ along to the next open house to do the detective work.
Hi There,
I know this isn’t much help to you but we have the same problem.
We have a 2 bed unit that we’re asking $140,000 for and is currently tenanted until at least July 2005 at $220 per week.
Need to sell it quite quickly. Anyone have any other ideas other than what has already been suggested to falsly inflate the rent?does the tennant have a registered lease? If not the new landlord does not have to take on the tennant and you can market the sale to owner occupiers. The investment market in Adelaide has cooled off a bit in the last year so I dont know how much interest a tennanted house would attract.
If you do want to market to the investment market, you can raise the rent as suggested earlier but make sure its done legally, slipping the tennant the difference makes you a CROOK!!!!
you can legally raise the rent by 10% every 6 months in SA. but you can call the tribunal to confirm this.Hang in there, the market is slower at the moment, but properties are still selling!!!
This is a common problem we come across for clients.
In the last week alone had 3 similar phone calls.
If the lease is short, an owner occupier (most of the buyers) will look at your property, otherwise it will only appeal to invetsors.
As we know, most investors have left the market so you are selling into a buyers market’to a limited number of people.
having said that, there are definately invetsors out there who are prepared to buy, but they are looking for a bargain.
The average estate agent will not have access to these people, so what do yo do?
1. Instruct an agent who specialises in investments.
2. approach buyer’s advocates with investors on their books.(eg we have about 10 investors on our books who are seriously looking for investments [not in Adelaide]) These buyer’s agents are working for the buyer – NOTfor you but if the price is right they will definately consider your property to offer to their clients and their fees are paid for by the purchaser.Michael Yardney
METROPOLE PROPERTIES
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FREE subscription http://www.metropole.com.auI would ask the tennants if you offered them a cash incentive to move out would they consider it. This way if they said yes you could then advertise the property as with a tennant or vacant at settlement giving a wider range of buyers. Or have you considered asking the tennants if they want to buy the property under a vendor finance arrangement? Regards Beanie
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