Should I sell my IP in FNQ

[Luv2Travel]

Just to clarify JASA owes $220k wouldn't the yield be calculated on what Jasa owes? Makes it nearly 9% yield?

I would calculate yield based on market value of the property to compare to other potential investments, not what is owed on it. Market value is what he could sell it for, and he could put these proceeds into another investment that yields better. Although obviously, have to take into account buying and selling costs. Otherwise you could have a $1M property, owe $100K, receive rent of $20K per year and call it a 20% yield?

 

[stargazer]

Hi

I understand whats being said, to use current val or market price but if i have a property and i owe $200,000 and getting $400pw thats 10.4% yield. If the property is now worth $500,000 thats a 4.16% yield.

To the person that owes $200,000 its a good cashflow property. If we use the current market values we would see the property as having a low yield and perhaps consider selling.

Happy for it to be explained.

SG

 

[JASA]

hello Biggles

Just read this thread as I just got back from a trip to Cairns, I love it up there!! My opinion would be to hold onto it if you can, however, I notice you want to be able to study and so can see why you want to generate some cash. I can appreciate this, as I put my investing on hold for a few years to do extra study/training in order to change my life. So if you see the study as an investment in it's own whether it be lifestyle change or increase in future earnings I say go for it, especially if you are still young. There is more to life than the number of houses you own.

With regards to Cairns, can I ask where abouts you lived and what the nice suburbs (i.e. safe and no dodgy areas) are close to the city? I have been there twice now (preferred the weather in January was it was hotter, was borderline too cool for me in May but still lovely!!) and reckon I could see myself retiring there, or at least live there part time when my finances allow me to.

Not sure if I am doing this right? The house I own is in Redlynch Rise Daphne Drive, Best street, worst house senario. I have decided to hold on to it because if I can afford to renovate in the near future to recapture views from a second storey, I think I will do ok. Right now I have taken a job that gives me free acomodation which means I can move out of another investment property I have been living in to free up some cash. At the moment my portfolio is a house in Redlych Cairns, a house in Port Douglas, Two apartments in North Adelaide and am currently in process of buying a block of land on Hindmarsh Island. They are ridiculously priced for waterfront properties....Biggles if you are interested in FNQ let me know, I think you would love my house in Port Douglas............its unique and spectacular!!!!!!! can send photo's

 

[JASA]

good area

my house in Redlych Rise (Not Redlynch Valley) In the foothills close to city and airport as well as the northern beaches. It is statistically a low crime area which gives us good rates for insurance.

 

[JASA]

Well everyone else was in shorts and t-shirt and my mother considered the weather perfect. I had light dresses on but wore a cardigan half the time, but mind you, I was the only one with long sleeves. I REALLY feel the cold more than anyone I know, so prefer the hot weather with high humidity. I'm a bit odd, so you'll probably find the weather perfect. I have been there now in January and May, and during both times, we only had a couple of showers during the January time, and no rain at all in May.

As Sunfish said, Townsville had perfect blue skies. We drove down there one day and noticed the partly cloudy sky disappear into perfect blue skies, but Townsville doesn't compare to Cairns! Cairns is FAR nicer.

Never need anything but a light cardi in cairns evern in winter. It is gorgeous weather if you dont mind feeling slightly damp for 50 % of the year and cope with frizzy hair My girlfriends hate the hair frizz but I don't suffer from that........I am dead straight. Townsville is barren, not a patch on Cairns and Port Douglas.

 

[JASA]

Thanks for your interest

JASA

Have you talked to the bank about what it would cost to exit from your fixed rates?

If you sell you will be up for substantial penalties to get out of the loan.....

Your 90k profit selling costs may look more like 70k after paying early exit penalties.....

Last time I looked at it the break cost were high. Now that interest rates are rising they will be less but it doesn't seem worth my while because of the costs of selling and buying another property.....so I am going to hang on and hope that people will begin to see FNQ and particularly Cairns in a better light. After all it has a deep sea port and international airport. Great climate and spectacular lifestyle opportunities. It is gorgeous up there!!! Keeping my fingers crossed and doing nothing at present. I did drop another 10k off the mortgage and will do the same again after this next financial year.

 

[JASA]

Agee 100%

Well everyone else was in shorts and t-shirt and my mother considered the weather perfect. I had light dresses on but wore a cardigan half the time, but mind you, I was the only one with long sleeves. I REALLY feel the cold more than anyone I know, so prefer the hot weather with high humidity. I'm a bit odd, so you'll probably find the weather perfect. I have been there now in January and May, and during both times, we only had a couple of showers during the January time, and no rain at all in May.

As Sunfish said, Townsville had perfect blue skies. We drove down there one day and noticed the partly cloudy sky disappear into perfect blue skies, but Townsville doesn't compare to Cairns! Cairns is FAR nicer.

Townsville is not a patch on Cairns, get yourself up there ASAP!!!!!!!!!

 

[Sunfish]

I was just having a beer with a mate of mine who was in Cairns for a birthday party over the weekend.

The common thread for the guests is music, not commerce etc. (some V good musos there) but the discussion was D&G. People desperate to sell their house and move for work are selling at auction without reserve but, get this, the price of gold and silver was a topic.

Apparently it is the half mil up type properties that are having trouble selling.

 

[recruit2]

Yes definately.
I haven't seen all of Australia yet, but have seen a fair bit, and the Cairns area is by far my favorite! I'd consider buying an investment property up there, as I could see myself perhaps living there at least part-time one day!

Biggles I am very much in a similar situation as you. I love the place too and am getting keener and keener to pick something up there soon while their market is quite flat, there are some absolutely beautiful properties up there, very scenic at the moment. I too am just a little concerned about crime and dodgy areas though, so need to keep on reading/asking etc. I plan to fly there on my way back from Tokyo and see if I can scope a really attractive offer out.

 

[recruit2]

my house in Redlych Rise (Not Redlynch Valley) In the foothills close to city and airport as well as the northern beaches. It is statistically a low crime area which gives us good rates for insurance.

Thanks for the info JASA, I've found your posts very helpful too as someone very interested in Cairns. Redlynch sounds pretty cool, I love the base of the mountains location. Do you honestly see many problems though with random thugs walking down the street or regular break-ins in the area etc? Do most of the properties have bars on the windows?

 

[Token Funder]

IPs in tourism-dependent areas have been an increasing issue for we lender types for the last 12 months or so. This isn't restricted to QLD, BTW.

 

[Sunfish]

Just come home from an auction in Townsville and I doubt anything (17 lots) met sellers expectations. Some sold "eventually".

 

[JASA]

Thanks for the info JASA, I've found your posts very helpful too as someone very interested in Cairns. Redlynch sounds pretty cool, I love the base of the mountains location. Do you honestly see many problems though with random thugs walking down the street or regular break-ins in the area etc? Do most of the properties have bars on the windows?

I lived in Redlynch rise (near the village) for 2 years, never had a problem, never saw a problem in that area. One of my previous tennants was a police man who chose that location to rent due to the low crime rate. It really is nice there. Some of the suburbs closer to the city ie Edge Hill are much more expensive and more easily accessed by the riff raff. Seems Redlynch while close enough to be handy (10-15 min drive from city) is a little too far for the criminal type to venture.