Hi,
We are thining about selling one of our IPs in SE QLD. My initial idea was to put it on the market with a 6 month lease in place however, I'm worried about losing the owner occupier portion of the market. Thoughts?Jambv,
Believe we are running at approx 85 to 90 days on market for the average property in Brisbane at the moment……….
Depends if you need the rent….. and why would you be selling in the present market if you didn't need to………
Jambv,
I am in the exact same situation as you, but my IP is in Sydney. I had a chat with 2 agents, and their advice is that it is preferable to sell the property with vacant possession. Their take is that tenants will pose difficulties with regards to access (too many viewings spoiling the tenants' quiet enjoyment of their home), and also tenants may not present the place at its best.
However from my point of view, as a buyer, I'd also personally prefer to look at a property with vacant possession, just so I'd know there were no issues with vacant possession. But that's just my personal opinion
Bottom line is though, which sector do you think your IP is best suited to – owner occ or investor? When does the current lease expire? You could always put it on the market now, with lease in place, see if any investors bite. If not, market again once current lease expires and tenants have vacated.
Swampy30
beedie wrote:Jambv,Believe we are running at approx 85 to 90 days on market for the average property in Brisbane at the moment……….
Depends if you need the rent….. and why would you be selling in the present market if you didn't need to………
Hi Beedie,
I didn’t realise the average was up to 90 days – thanks for the info. I’m keen on selling as I don’t think the market will move upwards anytime in the next 6-12 months & I don’t see the value in holding onto a non performing asset. We’ve had it for around 4 years and the value has increased 40% (gross) & I’m happy with that result considering the GFC & QLD floods.swampy30 wrote:Jambv,I am in the exact same situation as you, but my IP is in Sydney. I had a chat with 2 agents, and their advice is that it is preferable to sell the property with vacant possession. Their take is that tenants will pose difficulties with regards to access (too many viewings spoiling the tenants' quiet enjoyment of their home), and also tenants may not present the place at its best.
However from my point of view, as a buyer, I'd also personally prefer to look at a property with vacant possession, just so I'd know there were no issues with vacant possession. But that's just my personal opinion
Bottom line is though, which sector do you think your IP is best suited to – owner occ or investor? When does the current lease expire? You could always put it on the market now, with lease in place, see if any investors bite. If not, market again once current lease expires and tenants have vacated.
Swampy30
Thanks Swampy, you’ve definitely provided food for thought. The house is really suited to an investor & I think there’s some value in selling the house as an investment “package” that is, house + day 1 income. The agent is asking about lease renewal now, hence the original question. I like your idea of putting it on the market “leased” to see if I get a bite & if not, to try selling once vacant.
I would have thought that vacant possession would be better than occupied.
My assumption would be that a tenanted property would be a bigger deterrent to an owner occupier than a non-tenanted property would be to an investor (if that makes sense!)
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
