I purchased two properties in Broken Hill two years ago and now that I decided to sell one they have told me it is worth half the amount. This leaves me in a total mess on what to do.
Will Broken Hill property increase in value in the near future or will it continue on a down slide.
This is going to really affect me financially.Hi magsmg
Do you have to sell right now? If not, is the property producing positive cash flow? If it is why not hold, enjoy the positive cash flow and wait until values increase again.
If you do have to sell but don't need all the money right now, you could sell it with vendor finance. This type of sale may allow you to sell at your purchase price and generate positive cash flow for you, while the vendor finance arrangement is in place.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks Paul,
I do not need to urgently sell, however, have had lots of bad luck with one in particular that needs now renovating and don't want spend money I don't have at the present time so has been unoccupied for six months and as the interest rates have progressively been going up I decided to sell and got the shock of my life as you can imagine.
Is the vendor finance like rent to buy scheme?
I will look at websites.Why has the property value halved in two years?
I have had 2 real estate appraise the property and both have come back with same answer.
I am now having the 3rd do so.
I feel it is because originally I may have paid too much.
Regardless now I am in a bind wondering whether to keep or sell and make a huge loss. If I keep need to spend money on it so can rent it, if I sell I have made a loss that will affect my future badly.Scott I forgot to say thank you for your post. New on this site and desperate for information.
Hi magsmg
One area of vendor finance is the rent to own strategy. We usually sell with a vendor finance Instalment Contract (IC). It is more like a real sale as the government pays the FHOG to eligible first home owners that buy their first home with an IC.
I'd guess that their would be a potential buyer in Broken Hill that may be interested in buying their first home, without having to qualify for a traditional home loan.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
It reads as if you have a non inhabitable house (or at least one that a tenant won't live in pre renovation), that you bought it when it was attractive to a tenant or your then tenant couldn't be bothered shifting. Why are you surprised that a house that needs money spent on it is not going to fetch as much as when you bought it.
Couple this with any uncertainty about taxes, take into account that Broken Hill is not necessarily everybody's dream location – yes there is plenty of sand but the tide is a long way out and that the forecast population is continuing to decline.
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