Advise Please on selling non performing property

A

abullbar

Hi All I have a property in Gracemere near Rockhampton Qld,it was going to be a 3-5 year investment,but now it seems the once 5th fastest growing suburb in Qld has died on its feet.
I have been renting for the last 2.5years but now tenant has moved out and prospect of getting new tenants seems bleak as there are about 80 vacant properties there,I have looked at the web and they are offering $200 free petrol 1 month free rent for people to sign lease agreements.
I have put my property on the market for $340k (paid $350k new) Had 2 offers but the buyers had various excuses even though we agreed on a price.
I have since dropped to $330k Neg. and have advertised it through local agent.
They keep telling me that they will sell it and have people coming through.
They said they had 2 keen prospective buyers coming through this week-have not heard anything to date-I suspect they are inventing buyers to keep me on their books.
The problem-if you can't sell or can't rent ? What do you do ? Do you pay $1300 pm to Bank for the next .......years and hope to sell then for $50K less than purchase price. Advice !!
 
Bite the bullett and get rid of it. Make it the cheapest property availible and it will sell first. Learn from the mistake and move on.
 
If it were a blue chip capital city location, I'd tell you to ride it out and wait for it to come back in value.

If it's in a mining or tourist town I'd say get rid of it because who knows when the next ride is? Could be 15 years away.
 
I
abullbar said:
Hi All I have a property in Gracemere near Rockhampton Qld,it was going to be a 3-5 year investment,but now it seems the once 5th fastest growing suburb in Qld has died on its feet.
I have been renting for the last 2.5years but now tenant has moved out and prospect of getting new tenants seems bleak as there are about 80 vacant properties there,I have looked at the web and they are offering $200 free petrol 1 month free rent for people to sign lease agreements.
I have put my property on the market for $340k (paid $350k new) Had 2 offers but the buyers had various excuses even though we agreed on a price.
I have since dropped to $330k Neg. and have advertised it through local agent.
They keep telling me that they will sell it and have people coming through.
They said they had 2 keen prospective buyers coming through this week-have not heard anything to date-I suspect they are inventing buyers to keep me on their books.
The problem-if you can't sell or can't rent ? What do you do ? Do you pay $1300 pm to Bank for the next .......years and hope to sell then for $50K less than purchase price. Advice !!
Click to expand...

Unfortunately its part of the mining cycle, its gone south everywhere. I know investors who can not offload in Karratha and can not also rent.

Find out what type of properties have been selling and who has been selling stock in the area.

I would give myself a timeframe to sell and keep it short, no more than a month, go in aggressive, competitive. If it does not sell you will need to dramatically reduce your rent, some money is better than none.

MTR
 
really? is it that bad out there???

I wouldnt buy in gracemere in the first place, however,

can a city 20km away be so different in terms of rental vacancy and rental cycle???

my research indicated that rocky was at teh bottom of the cycle, and things were either about to or starting to head up, with prices hitting very low and yields in the lower price range hitting like 7% on average!
 
Creative selling??

To open the property to a wider market, could you offer a second mortgage carryback (where you hold say the deposit amount), thus opening the property to those who the bank declines???

Of course, you need to get a REA who will deal with these types of deals and know how to draw up a second mortgage so you have security for the moneyyou hold back in the deal. :(
 
ChrisA1 said:
To open the property to a wider market, could you offer a second mortgage carryback (where you hold say the deposit amount), thus opening the property to those who the bank declines???

Of course, you need to get a REA who will deal with these types of deals and know how to draw up a second mortgage so you have security for the moneyyou hold back in the deal. :(
Click to expand...

Nuh Uuh..just heading for further trouble IMO.:rolleyes:

2 Choices: Get rid of it quickly or hold on...depending upon how much you owe on it of course.

Lesson learnt, mining towns can go bust before you know it, not after.
 
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The Fence said:
Lesson learnt, mining towns can go bust before you know it, not after.
Click to expand...
I'm not sure if I would call Gracemere a mining town as there are no mines nearby but it sure was a speculative/whiteshoe town.
At best it would have been a heap of Gladstone workers doing the 100klm dash daily.
Agents I have spoken to a few months back said Rocky workers wont live there as there is a 40 minute traffic-jam each morning and evening at the roundabout.
I think the real winners are the single mothers with multiple kids and no jobs who have now moved out there for cheaper rentals (so agents told me) and Ted Price Homes who built most of them ;)
He did so well out of the last spruik-a-thon and this one that he has a park named after him.
https://maps.google.com/maps?q=Ted+...e+Park,+Gracemere,+Queensland,+Australia&z=17
 
At that pricepoint and rental, consider selling under vendor finance terms to someone with a minimal deposit, self employed etc, so would struggle to get standard finance. This would make it cashflow positive.

The plan would be along the lines of:
Take it off the market
They pay you a deposit to purchase the house for $350k, no agent involved
You finance it at something like SVR plus 1.5% and pocket the difference from what you are paying
They also pay the outgoings

They get non standard finance, you don't lose money and have a positive cashflow outcome instead of a bad asset you can't sell for a loss.
 
The Fence said:
Nuh Uuh..just heading for further trouble IMO.:rolleyes:

2 Choices: Get rid of it quickly or hold on...depending upon how much you owe on it of course.

Lesson learnt, mining towns can go bust before you know it, not after.
Click to expand...

Yes, you hit the nail on the head.
 
gracemere

Sold the house on Friday $50k--loss-But I feel like I have won Tattslotto can claim the loss on a property in darwin which has gone from $170K value to $470+ in 5 years.
Thanks for all the advise
 
gracemere

No-I plan to retire in 2-3 years and live in Thailand-I think by then it will be worth $500k- new units in the same area have starting price of $600k
 
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