- moolahMember@moolahJoin Date: 2005Post Count: 26
Currently I own a freehold Strata townhouse which is not rented out, needs a make-over and is worth about $380,000. It's within 5k's of the city and I've owned it for about 25 yrs. Regretably, I can't say that I've actually enjoyed having owned it. Both my family and I have lived in the townhouse and we've experienced everything imaginable from having disagreements with our strata managers, other owners and tennants to actually having to take several matters to Court.
More recently we purchased a Torrens Titles house and are much happier. I feel sorry for anyone contemplating owning and living in a Strata Titled townhouse for any length of time.
The reason why I've decided to ask for help from this forum is because I want advice on what I should do with the townhouse. At this point in my life it's becoming an increasing burden and my health is suffering. I need some creative ways of geting out of my present predicament. I do however think that selling the townhouse (regardless of any longterm rental gains) may be my only way out. (please tell me if you think I'm wrong)
In saying this – it's virtually impossible for me to visit the townhouse without becoming anxious so any kind of make-over work would have to be carried out by persons other than myself. I am actually a building professional but I think that the additional worry of having to deal with some of the trades would certainly give me a heart attack.
In closing – I must admit that I was rather impressed with a report I saw on "Hot Property" (Channel 7, Sunday night) which showed how potential home buyers could buy their home through Rich Otten if they did their own make-over and later took ownership of it in full. I thought that this way of tackling the problem may suit me but later discovered that WRAP's were illegal in South Australia.
How do I get out of my present predicament?
MOOLAH1WinnerParticipant@1winnerJoin Date: 2004Post Count: 477
You own a property you don't like.
You live in another.You don't say anything about owing money.
Sell the one you dislike, keep the one you like, pay the mortgage if you have one.
From the comments you make about dealing with tradesman, forget renovations unless you are a sucker for punishment.
Keep some money for a down payment and go hunting for an investment property you like.
Alternatively if you have no money worries, buy a beach house or a rural property in need of some care and enjoy doing your own thing.
Fishing or golf?TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Sounds like you have have purchased the townhouse prior to CGT and it therefore may be CGT exempt. If that is the case, you may be able to rent it out for years to come and watch it go up in value, and sell it CGT free on your retirement. Your other new home could be CGT exempt too if you class it as your main residence.
Of course you could sell it now, but you would miss out on all that CGT free growth yet to come.HandyAndy888Member@handyandy888Join Date: 2005Post Count: 160
Sell…if its causing you psychological pain, get rid of it!!!suavemechanicParticipant@suavemechanicJoin Date: 2004Post Count: 106
offer vendor finance for about 20% of the value of the property.moolahMember@moolahJoin Date: 2005Post Count: 26
Thanks – 1Winner, Terryw, Handy Andy & suavemechanic for your advice.
suavemechanic you mentioned that I should "offer vendor finance for about 20% of the value of the property" but didn't explain what vendor finance was or provide a basic strategy for me to consider in resolving my predicament using this method. It seems interesting and I would like to hear more from you in this regard.
Cheers – moolahsuavemechanicParticipant@suavemechanicJoin Date: 2004Post Count: 106
sorry should check in after running my mouth off !
if you havent read up on this in the mean time it is a bit like steves wrap strategy where you agree to finance part of the property yourself (as a second mortgage )
your target customer is some one who feels they can afford more property than the lenders allow or lacks a deposit for whatever reason ,in other words an aggressive investor hell bent on building up a portfolio as quick as possible
the buyer then goes to the bank and asks for 80 percent finance and hopefully qualifies nicely without mortgage insurance and a jacked up rate as he or she has a deposit ( your loan )
you recieve intrest payments and after a year or similar specified time the property is refinanced /fixed and flipped /the farm is sold /grandma 's will is distributed and you get your money back……….
it is a way to get a premium price for a scruffy property and open yourself up to a different type of customer who doesnt really care what it looks like and will act fast if you leave a bit of profit in it for them