Hi everyone.
I have a unit in Perth I am struggling to get an offer on .Seems like the market has gone cold on units.Or is it just mine ?
I know I have broken a rule on buying as it is less than 50sq metres(34) but people won’t know that until they see or ask. So the first problem is to get people to see it and traffic is a bit light.The adds look ok to me and it has been open each weekend. It is on the internet to view and I have put in smart new furniture for display and you truly would need to buy close to new to get a better looking unit.
It is right on the border of Inglewood /Maylands in a block of 13 (extremely well looked after)with lots of land ,there is money in the bank and levies are only $100 a quarter.
It is 400 metres to the train station and shops and 400 metres to Beaufort St cafe strip and shops . It is a first floor corner unit with trees and gardens outlook on 3 sides.
The complex is on a quiet corner with expensive house on both sides while across the road is a street full of expensive houses apart from a masonic hall and another complex of a similar size also well maintained.I think it is a really nice location.
I dont think it is overpriced .We are trying to get offers around Mid 120s or better and it is fully renovated with everything new except the water heater.
It is all done floors,carpets, tiles, shower screen, vanity, kitchen ,doors, blinds, handles, lights, switches, stove. Surely it is value even in todays market?
What am I or the agents doing wrong ?
Is there another way to market this ?
Should I wrap it ? (I haven’t done any)
Should I part vendor finance it ?
What are the pros and cons?
Does anyone have another strategy?
[biggrin][confused2]
Cheers and thanks for your help
GregGrega,
Gee, your post is pretty close to an ad… Actually, the more I read of it, the more it really IS an ad, but I’m feeling strangely benevolent today :o)
grega… there’s not an entire rule about buying under 50sq metres, but 34 is a bit tiny. it sounds like a studio you’re selling (I think it must be for the size). You can buy a studio in the middle of sydney in the 120k mark.
It sounds like a nice little place. I think you might have to wait for a vendor. Grega, the question might also be, why are you selling? Perhaps you can keep the little guy, and use him as equity.
Also, you’ve not mentioned rental yield. If the yield is high enough, you might get a buyer interested. whilst a small studio might not achieve much future CG, it may achieve some yield to make a buyer’s purchase worthwhile. If you haven’t got a tenant, why? Are you wanting to be able to sell to both an owner-occupier or an investor? As an investor, I like to get a tenant on settlement. Perhaps get a rental appraisal from the RE you are selling with… of from any RE agent in the area if you are selling privately. Add this to the net ad.
kay henry
I must admit it wouldn’t be attractive to me. Low LVR means a lot of equity tied up. Also the trouble finding a buyer as you are experiencing.
I think I would only buy sub 50 sqm where the growth and yield were assured – not even central Sydney these days!
All the best – perhaps you need to furnish it, target the corporate rental market and sell it as such? They usually pay higher rentals.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sorry Kay,
Not meant to be an ad.Please accept my apologies.
I am hoping someone has some alternative strategies but I am aware that to offer help they really need to understand the situation.
My experience on this and other forums is that if you are too vague then the only advice forthcoming is to give more information first.
I bought recently to renovate and resell and had not intended to keep.
Maybe I can do as Mortgage hunter has suggested and rent to corporate people .
It is already furnished to a high enough standard.
Motgage hunter could you tell me how to go about that as it may solve my cashflow problem?
Does anyone have any experience in this area ?
Thanks again ,
Cheers,
GregThere will generally be REA’s who specialise in this sort of PM – I don’t know who they are in Perth.
I suggest you call around or look in the rental ads. I know they are quite obvious up here.
Other than that it is fairly standard.
all the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985NODOC Loan – 65% Loan – No questions asked!
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Hi,
I am currently looking at a studio apt which is less than 50 Sq metres and I cannot get finance for it. This may be the issue with potential buyers as the RE pointed out the size of the Apt and the issues I may have getting finance prior to showing me through.
How did you get finance for it originally?
Originally posted by grega21360:We are trying to get offers around Mid 120s or better and it is fully renovated with everything new except the water heater.
It is all done floors,carpets, tiles, shower screen, vanity, kitchen ,doors, blinds, handles, lights, switches, stove. Surely it is value even in todays market?Unfortunately the ‘value’ of your property is not determined by you, your real estate agent or a valuer. It is determined by the buyer, and there is nothing you can do to change that. There are still buyers to be found in all markets, but you have to make your flat look more attractive than other similar competing flats, and price is more important to the buyer than many of the renovations you’ve listed. Remember that in this age of Renovation Rescue & Auction Squad every Tom Dick & Betty think they can make over a house!
And don’t forget that if you bought it in the last 5 years many potential buyers will check what your purchase price was and take it into consideration – so easy to do these days!
Drop your price a little. If you still have no nibbles, drop it a little more. When people start looking through, you know you’re getting near the market value. Just don’t fall into the age old trap of ‘chasing the market down’ – In a falling market todays bargain becomes tomorrows fair price!
An alternative way to estimate the selling price of your property is to take the yearly rent, divide by the current interest rate and multiply by 100. That is the tipping point where FTBs and STRs will start pouring back into the market.
Cheers, F. [cap]Originally posted by Dimmick:How did you get finance for it originally?
I think the important lesson here is DON’T! [blink]
Alternatively, I know where you can get one in Perth… seller might be under a bit of pressure to sell… chuck me five Gs as a ‘bird-dogging’ fee, it’s yours![cap]grega,
Is everything you listed in your intial post in the ad ie: the situation, what it’s near etc. It mgiht make a long ad and it might cost more but it also might get poeple in the door. Might be worth trying for one week anyway.
Secondly, is it in the Homebuyer magazine? I couldn’t see anything in those areas when I flipped through taht sounded like your description above. If you’re going through an agent, why hasn’t he got it in the homebuyer. He may have it in the paper already but many like to see a colour photograph and then decide whether they will look or not.
While on advertising, is your advertised on the same day each week, I notice that Maylands has a reasonable amount of ads on both Saturday and Sunday so if your aganet has alwsy been putting it in on Saturday then try Sunday or vice versa, it amy attract a different set of people.
Thirdly, how did you pick your agent? Did you take him as the price he said he could get was higher than anyone elses? If so, it could simply have been a pitch to get your business and when you don’t have luck then he may start conditioning you to sell for less, which if he’s overpriced it will need to happen. Are you on a fixed price contract with the agent ie: his commisoon is fixed regardless of the price he gets, if so, then he has no incentive to try for the higher price.
Good Luck. Don’t get too downhearted but do try different things.
Regards
PKChange Agents, get it on the net if it is not already.
And change the number you are using for the price. Some numbers are a deterrant. This is a science and most agents know how to list for effective sale.
At that price point, an agent may not be too keen to try hard as the commission will be low for them.
Byronent
Adelaide SA
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