Forums / Property Investing / Creative Investing / Wrap: Not Happening..

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  • Profile photo of anzionanzion
    Participant
    @anzion
    Join Date: 2003
    Post Count: 9

    Hi all

    I have been trying to wrap a Sydney property for the past 6 weeks with no luck so far. It’s my first attempt and I’ve had quite a bit of interest, but not one application filled in yet. I’m getting a bit disheartened, as it’s costing me alot of money with no tenant in there and mortgage repayments to make.

    I have tried fliers, classified ads, internet ads, Domain, The Telegraph, Trading Post, signage etc. I have tried rewording the ads, but it makes little difference. [weird]

    Can anyone suggest some other methods which may have worked for them – my price is around $500k, so the repayments are going to be high, even when I offer a very low interest rate.

    Any thoughts or comments would be greatly appreciated.

    Anzion

    Profile photo of lifeXlifeX
    Member
    @lifex
    Join Date: 2004
    Post Count: 651

    That’s a property that would require a large income to service repayments (at 6.5% = $625p.w. just for interest…phew!!!). I would of thought that the type of person who could afford such a place would normally be able to get cheaper traditional finance (this eliminates most wrappee applicants).

    Who were you hoping to attract to such a property?[eh]

    Answer this, and then focus on reaching these people. ….Maybe professional investors that wan’t a fancy high capital gain property to live in. but don’t wan’t traditional finance eating into their investment equity.

    good luck [hat]

    lifexperience

    Profile photo of FWFW
    Member
    @fw
    Join Date: 2002
    Post Count: 478

    I haven’t wrapped a house in that price range myself, but I know Rick Otton always says that at that level you need to use a lease option rather than an instalment contract. Apparently it’s just more appealing.
    Also, things are a bit quiet here in Melbourne, being winter and with so much negative press on property, it could be that you’re encountering the same thing in Sydney.
    The good thing is that it only takes one buyer to sell the house, and at least you’re getting enquiries, that’s a start.

    Keep smiling
    Felicity 8-)

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636

    Maybe you can try making the deal more appealing. Rather than ofering a straight package you could offer a cheap intro rate for the first year and wear the costs. You could build the price up and reduce the rates to make it appealing. fiddle with the figures to make it work. There are many ways to couch the deal to make it attractive but as FW said the times they are a changing…. Always got to do what deals and the kind of deals the market tells you to.

    Enjoy
    AD [:o)]
    (Andrew)

    It is good to have an end to journey toward, but it is the journey that matters in the end.

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