My husband & I have just listed our Carindale investment property for sale 11 days ago(8kms south east of Brisbane). It is a 3 bedroom & 3 level townhouse, 3 bathroom,s 1 garage. The complex has electric gates, a small pool & gym opposite our townhouse. Also there is a huge Westfield across the Road. We’ve had this property about 5 years from new. It is tennanted & we have had 2 close offers already with one open home. It was listed for $265,000 & have been offered $257,500. The carpet will probably need replacing in the near future & maybe painting needs to be done soon inside. Do you think we should accept this offer?
Teedee[blink]
Why don’t you counter offer at $262K or thereabouts?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
We did do a counter offer of $262, but they won’t budge. They have said the offer is on the table for 5 days.
Sounds like they have read some investing books.
Well you need to decide to take it or leave it.
Was there enough other interest in the property to justify holding out for the higher price or do you think you should take what is offered?
Noone here can tell you what a fair price is for your place – this is a question only you can answer.
Cheers,
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Teedee,
How much do you want to sell it? And why are you selling?
Is the extra work you have to do worth the extra money you might gain by hanging out?
There is a cost no matter which way you decide to go.Harley[hmm]
HI Teedee,
Creek Rd?
As Harley has asked why sell?
This property is in an area that is easily accessible to the city, you have a good on-site manager who actively increases rent & has next to no vacancies, and the complex has good access to the motorway and central business district.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113I have offers in on whole blocks of town houses in Darra, Wooloowin, Toowong, West End and Toowoomba.
The stated price here sounds Low end though the market is flat to dropping particularly in that price range and across the S.E. of Qld, I am sitting and playing hard ball and would expect the same of other astute buyers… With the downsides you have suggested of your place will you be getting emotive action from potential buyers? Will rugs and hire furniture raise the WOW factor? Your area shows strong standard unit dwelling price ranges consistently pushing the $700K envelopes…
I personally could get the interior painted for $500 and would. Rugs and funky lounges and bed spreads and big wall hangings also equates to a total of $1000 spent to attempt to push offers over your asking price WOW!… BUT the market does seem “just†flat and somewhat over speculated…The tenants? How do they respond to the invasion? Can they be encouraged to soft sell? How are your relationships (not personal but professional, local neighbours, Agent and tenant?) It’s nice and close to the Sleeman Complex also… Have you focused your sites on your target market through a thorough exit strategy? Picture the face/s of your buyers, you are in a great price range and great position…The GTW MTW a stones throw and the Old CLVND also…There are some gems in the area though and this is where your competition lies e.g. 12 GREENDALE WAY CARINDALE…Mind you even “funky†old high sets are commanding $350K+? Obviously 43 Scrub Rd you’re nearest competition and not on a major arterial or across from busy shopping centre…What do you have over and above these properties? I’d say heaps! Especially with fuel prices rocketing, need I say more? Bus anyone?
The local (Carindale) market peaked short term in May and Nov ’05 and is on a downward trend and at a 5 year low as was expected (peaked ‘01 and ‘03), the speculation from agents has been rife and with this we usually see a downturn as agents are lining up (and jumping over each other) to offer places so things are tight on the sales side… Median price is up and rising in this area as are the upper percentile pushing into the $1M+…Seems to be a buyers market in Carindale and the S.E. of Qld at the moment though I am talking investing not emotion based home buying…
I could go on about student accommodation and or vendor finance…
It’s a great area with lovely homes and close to the city and amenities, prices are pushing out that way though the run seems to have ended, hopefully someone else will debate all this and we can all benefit…
I am not an expert or a professional just considerate and kind, a rare breed I am told…
I won’t wish you luck, you need strategies and patience, and some might say solutions, GO WELL!![biggrin]
Sincerely, Jarrah
0431 433 288
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Thank you all for replying to my query.
Yes, this property is on Creek Road, & has been a great property purchased thru the Investors Club. I think it has only been vacant 3 weeks in all the years we’ve owned it. But unfortunately we need some cash flow. The purchaser offering this bid is going to move into the property. As for price, we don’t live in Queensland & were guided by the agent. And you never know when they are telling the truth. The low $260’s would be acceptable. So, I know what’s offered is only a bit less than the offer, so do I submit or stand my ground.
Teedee[eh]
Hi Teedee,
Disclaimer: I am not a qualified accountant or financial advisor.
It’s hard to say if this would suit your situation but I’m throwing it in as an idea……
If you need some extra cash, why don’t you talk to your lender about extracting some equity from the property without selling. You will lose a lot of money in fees if you sell (especially through an agent) and you will trigger a capital gains event as well.
You may pay a bit more in repayments if you draw some equity but at least it is not taxed and you won’t lose mega bucks from paying capital gains tax. Meanwhile you get to keep your property and benefit again from future capital growth once the cycle returns to undersupply.
Todd Burns
http://www.freepropertyhelp.com.auHi Teedee
We live in SE Qld.
Firstly what ever you do you must use Tim O’Dwyer as your solicitor.He is our personal lawyer and dont know whether you have heard of him but he is a solicitor you can trust in Qld
Hi Kate,
Thank you for your recommendation on a solicitor. If we are not committed already with someone else, I will definitely use Tim. I knew I should of come on this forum earlier.
Thanks again,
Teedee
Hi Crusher,
Thank you for your ideas, but I think we are maxed out in the lending department at the moment. We have another investment property that has gone down in value in St Kilda, so are hoping for that to return to a higher valuation. We would lose too much if we sold that one.
Thanks again, [evo]
TeedeeMaybe it is now past the time for price adjustments.
Presumably you were happy to list it at $265k in the first place.
The offer you have received is 2.9% less than the asking price.Although we should never see a certain percentage discount as acceptable necessarily, it should not be too surprising.
When setting the original price maybe you should have added a little, as a lot of people expect to get a little discount (including me[biggrin])
I think the problem may be that you were not certain what the value was to begin with.
Perhaps you should get some more valuations on the property before accepting the 257.5k.
Sorry to so direct, but that is my opinion put forward.[hair2]Giddo
http://www.standrewsplace.com.au“I am not a religious man; but if you are out there somewhere Superman, save me now! -Homer Simpson
teedee,
i would take this price – how many other buyers are there will to pay the same
the answer is – you will never know! take the offer!!!!!!!!!!
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Don Nicolussi | Mortgage Broker - Home Loan Warehouse
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Hi there… Im with Giddo and DLPP…
I dont think you’ll get much better than that, purely based on the fact that people will expect to pay less than the ad price.
Maybe next time you’ll have more of a buffer.
Either way, best of luck.
There have been some really experienced posters on your thread, if you reread it again you may find some really useful info.Good luck and Best Wishes,
[happy3]“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Think about what you are going to use the money for rather than the couple of thousand you want extra on this deal.
Will the extra time waiting for a better offer mean that you will miss out on your other opportunities?
Personally, I’d take the money and move on to the next deal.
Remember that after the 5 days expires, and if you do not get any better offers after a week or so and you go back to these original people they may very well offer $5-$10K less (most buyers would I think) – then what will you do?
So look forward to where you are going and ask yourself will this offer move me faster towards that next goal?
Good luck.
Hi Teedee,
I wonder why you are selling this property when by your admission it has performed very well and you have an underperforming St Kilda property.
It seems to me that you are selling the wrong property.
You also indicate that you are experiencing some cashflow issues. Have you taken steps to minimise your outgoings and maximise your incomings? Have you restrutured your loans to ensure minimum costs? Can you use a line of credit to pay outgoings?
All of these strategies may enable you to hold the existing properties without the need to incur CGT and agent’s fees.
Have you done a ITWV?
Maybe there is a solution within your grasp that does not need for an amputation.
Derek
[email protected]
http://www.pis.theinvestorsclub.com.au
0409 882 958
Skype – derekjones2113Hi Everyone,
Thank you for all your wonderful words of wisdom that I will defintely take on board. Yesterday someone wanted the property deperately & they offered the asking price which we accepted. Fingers crossed his finances hold up to conclude the sale. This price is a new benchmark for the complex.
Cheers, [biggrin]
TeedeeOriginally posted by teedee:Hi Everyone,
Thank you for all your wonderful words of wisdom that I will defintely take on board. Yesterday someone wanted the property deperately & they offered the asking price which we accepted. Fingers crossed his finances hold up to conclude the sale. This price is a new benchmark for the complex.
Cheers, [biggrin]
TeedeeCongratulations – setting a benchmark price in todays market is no mean feat!
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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