bad investment – is it time to run?

Personally I think Beenleigh (and the rest of Logan) will do pretty well over the coming years. Prices have seemed to stagnate over the last 12 months and it hasn't experienced the same massive growth increases down south in Syd, Melb and Canberra. Maybe it's only a matter of time before it takes off again.

If it was me –  I'd keep it.

Jamie

Hi Lena,

What type of property is it, how big is the land etc.  Maybe there are some ideas which might help you improve the value.  Often if you look at what your costs are which you would incur in getting rid of a property and the loss you might make as well, you would get a better outcome by investing some of that amount back into the property, lifting the value and then reaping the increase in rent and equity.

The trend is also consistent with the market over the past few years, many investors get bored with their properties, and also are too ready to cut and run instead of keeping with their strategy of riding out a few property cycles and sticking to why they purchased the property.

You shouldn't have to set your strategies in concrete as there are always times where a change is needed, however consider it seriously before making a decision to sell.  Perhaps there are other options….

Happy to do a report on the property and area for you and brainstorm other ideas if that would be of interest.

Don't stress though, there are always many solutions.
Cheers
Paul.

Hi Lena,

I agree, hold on tight.  If you sell, you've kind of wasted the stamp duty and legal fees money you spent acquiring the property. 

Hey have you had a depreciation schedule done on the place?  If not, quantity surveyors do them, they cost about $500.  Basically they work out how much the building, carpets etc are "depreciating in value due to age" each year and they come up with a magical number that you are allowed to just declare on your tax return as a "loss" for the next however many years.  This means you get some tax back from your regular day job simply because your property is ageing.  And of course the fee charged by the quantity surveyor is also deductible.

How long has your tenant been in place? Are they paying the rent and looking after the place?  Are you putting the rent up each year?  ie are the tenants paying the current "going rate" for the area?

JacM