- GauravParticipant@vermagauravsinghJoin Date: 2017Post Count: 1
Our situation is exactly like Anabelle’s. We have been looking for a tenant but no one in sight. Cant stress enough, do your own research. If its your first investment, do not go for skewed markets like Gracemere. We are trapped and cant go anywhere but stay put for how long, dont know. We were told Rocket is supported by solid research and years of experience. They knew this was our first asset ever, we shouldnt have been advised Gracemere.
Our outcome 8-9 years after purchasing – we were advised to set and forget and wait but we cannot ‘set and forget’ with maintenance costs increasing with the properties being older, holding costs reducing with limited depreciation left and significant negative equity.
We took the expert advise of Rocket Property Group and purchased a house and land package in Gracemere for $375,000 with local sales sitting in the $290,000 – $320,000 presently and continuing to slide attributed to over supply matters. Current rent $320/week and two air conditioners packed in requiring replacement. Adani mine on hold has not helped either to stimulate the economy.
We also purchased a property in Far North Qld from Rocket 9 years ago now – purchase price $320,000 for the three bedroom apartment at Clifton Waters – currently the sales are sitting around the $250k mark for three bedders – high holding costs with high insurance, Body Corp fees and maintenance matters increasing and furniture requiring replacement a couple of years ago.
We have asked if Rocket had any buyers to enable us to sell however were advised they do not deal with second hand properties and to continue to hold on.
So sorry to hear of yr troubles.
I am not trying to rub salt in the wounds but its a good reminder for all of us to learn to do our own research and due diligence.
There are many many many (property) selling companies that are salespeople who really beleive they are doing their best to help people but unfortunately are still needing time to learn how the markets can sometimes change very quickly and affect values. This is especially exaggerated with new properties as usually they are sold at time premium when compared to older properties in the same areas.They are usually much smaller land content too.
Is there any way you can increase the rent by renting by the room or just furnished or something?Any other creative ways you could change this situation?
It was our first investments and as a university graduate I assumed that when an agency advertises professional service and features in key Australian property magazines that there was credibility of advise. We have subsequently undertaken our own research to purchase IPs.
Many options have been undertaken to manage the situation but with the increased interest rates, negative equity and consistently dropping rents of these specific properties the situation is dismal.
I am really sorry man- it should be ok to believe that someone can do what they advertise and be able to rely on it . I think most of us have been taken for a ride at some stage in our Investing , so it’s not good man .
For what it’s worth this guy Rocket – seems to believed he was doing the right thing and from what he said about his personal portfolio he was honest and said he has taken a big hit too – many in Gladstone ??? Are u able to ask him again privately whether he would be willing to help you in any way ?? You never know . Often us humans believe that when things are going great (property is growing at great Guns etc) that nothing will ever go bad – it’s human nature unfortunately so we tend to just keep ramping up instead of slowing down and getting ready for things to slow down or worse ! I am hoping there is a way you can turn this around and thinking of other options for you
I just had a look at Yr deals Clyde
How much do u owe on these ?
If u are gonna lose massive selling or you believe it will turn with Adani(good chance the market will turn if adani happens )-
I would keep paying them down to get close to positive cashflow as quick as possible .then once it turns wait for a period of good growth (not too long)then sell .(or use the extra rents to keep paying 1 down if u believe there are long term prospects and sell other ?)
Remember focused mining based areas are always up and down
In the meantime – try hard not to get too down on these 2 deals and stop u growing yr portfolio in other areas if u possibly can . Even rent yr ppor our and rent somewhere cheaper till u get on top of it ?!!
Rocket advised us that Gracemere was NOT a focused mining area and not high risk like Gladstone or Moranbah as it has government departments, strong beef industry, varied businesses, education, NGOs etc – a more balanced economy yet its been hit like the mining towns
From recollection, I recall accessing one of Rocket’seminars in Brisbane where one of his guest speakers, a Gracemere developer, stated that properties would increase in value in ten years (back in 2009) to a million dollars for a four bedroom home. I recall stating to the lady sitting next to me that that is a huge assertion and not likely nor possible (simply a greedy assertion) and would be happy with a 6% per annum increase over time…I did not think it would turn out the opposite with a ongoing decline since 2009
- This reply was modified 2 years, 8 months ago by Clyde.
Have you made any progress with this as yet?
Have you Any thoughts to share you had in getting through it?Then maybe we can help.
Sell one at a loss? or hold for now till/if mine comes?Rent at increased rate?Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763
G’day team, and especially Clyde.
Clyde – I’m coming late into the discussion here, but am I right in believing you own two properties with negative equity and negative cashflow?
If so, are you in a position to absorb the loss of selling either (or both) of them? Or are you no longer able to afford the cost of owning the properties and can’t afford to fund the negative equity on sale?
- This reply was modified 2 years, 8 months ago by Steve McKnight.
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