Frozen with indecision sell/hold

[Shann]

Hi all,

As above we are so stuck in our thoughts that we can't agree on what to do.

Property we have owned for 2 years- have just recieved DA to subdivide and build a duplex. This was our original plan. Our financial situation has changed and we can no longer afford to build/subdivide. Our option is only to hold or sell with approval and plans.

If we sell now we are in a situation of making a small return on our investment, not really worth our time and having our money tied up.

If we hold then we have the chance of a higher return (or a loss) but we are also stuck in a joint investment with a partner that is turning difficult. Partner wants to sell but we can't afford to buy them out. They won't force the issue (yet) but if the market drops further then I can see them deciding to cut their losses and selling at the worst possible time.

So sell when we sense the market is on the turn in our area (some micro things are happening with new infrastructure close by etc) or hold and face some difficulties with a family member?

Oh and yes - lesson learned we won't mix money and family ever again!

 

[Ausprop]

if not for the JV situation I would say hold, but in this case I think you already know what needs to be done.

 

[mattnz]

Was it your financial situation that changed or your JV partners? If it was yours and that impacts your ability to progress, you can't blame them for wanting their money back to move onto profitable ventures with their capital they have invested.

 

[Shann]

The JV partners financial situation has changed.

Other impacts have been external - borrowing rules, valuations etc. We also had some unexpected costs which have eaten a lot of our contingency earlier than expected.

 

[Macca]

I would sell, I would much rather a mild short term pain with an end to it and then complete freedom.

A long drawn out stalemate will cost you time and dampen your enthusiasm, sell, learn, investigate, act with better knowledge next time

Good luck

 

[The Y-man]

You need......

The Y-man