Hi Everyone,
I currently hold a property in Gunnedah. I have owned it close to 2 years and recently had it valued and have had no growth. It is just on the outskirts of a housing commission area and It costs me $80 PW to hold. RP Date is valuing the property at 165K and I purchased it for 135K. Balance on the property is 80K and I was hoping to release equity to fund another purchase.
What are peoples thoughts and Ideas???
Help
Regards
Matt
So its current value is 135k after you have had it valued by the banks valuer? (no growth on your sale price).
Put the property up for sale and if you get genuine offers at the 160-165k. Sell the property. $80 to hold per week on a 135k property is alot. I pay $70 dollars for some properties worth $400,000.
If you don't get genuine offers at that price bracket you think its worth then its just not worth that.
Nothing wrong with selling it if means you are getting a better performing property.
What do you think the potential of growth is? If you see growth hold on but it will take a long time to get rid of a negative CF of $80pw.
That is a LOT of negative CF for a cheap property. Why is it so high? Have you fixed the interest high?
What's the rent?
HI,
I note past Blogs refer to selling, costs, performance and looking for a better deal. If you sell you must consider further losses such as Real Estate Agents commissions. Have you done a full Property Investment Cash flow Analysis, identified your losses and considered an Income Tax Variation if you are losing cash. I am not saying to not look at selling the property if it is under performing, but I do recommend completing a full analysis from an external company that has the skills to do so and give you an Educated overview.
Cheers Grant
You must be logged in to reply to this topic. If you don't have an account, you can register here.
