Help - When to Sell?

[Roachy]

G'day All,

Situation: We have been looking to sell IP2, which is located in Stafford Heights on a main road. We need approximately $425k Sale Price to break even. The lease for IP2 runs out in March 2014 and we need to give the tenants two months to vacate. Thus, we need to make a decision on whether we will sell by next Monday.

I don't want a prolonged sale (over 2 months) as it costs too much with lost rent. Thus I want to price it right. At this point in time I think for a 2 week sale a Sale Price of $400k is a realistic figure.

My question is will the Stafford Heights market continue to make gains next year? and should I put the current tenants on a 6 month rental agreement and sell October 2014? or should I bite the bullet and sell in March 2014 (due to the increased buyer sentiment in the area (main road etc))?

Look forward to hearing your points of view.

Thanks

Roachy

 

[MRO]

Why do you want to sell?

 

[Kinnon Bell]

Why can't you sell with tenants in?

 

[Roachy]

Why do you want to sell?

Need to sell some properties to allow us to buy into a new market. Bank wont give us any more cash (

 

[Roachy]

Why can't you sell with tenants in?

Kesse,

You're right we can, but they aren't the most cleanest of tenants. And I feel that we wont be appealing to the first home buyers who are apparently buying up main street, cheapish property with tenants in place. W

hat do you reckon? Have you ever sold with tenants in place with some sort of condition in the rental clause that you will pay for their removal if the place is sold to an owner occupier? Can this be done?

 

[Kinnon Bell]

Kesse,

You're right we can, but they aren't the most cleanest of tenants. And I feel that we wont be appealing to the first home buyers who are apparently buying up main street, cheapish property with tenants in place. W

hat do you reckon? Have you ever sold with tenants in place with some sort of condition in the rental clause that you will pay for their removal if the place is sold to an owner occupier? Can this be done?

I sold 2 houses last year, both tenanted on fixed term leases and both to people who will have the property as their PPOR.

The second house was to FHB who paid $16k more than they should have (even the bank val came in less than the purchase price) and the house wasn't kept the in the tidiest of conditions but when it comes to FHB I find all reason and logic goes out the window to get what they want.

 

[wylie]

hat do you reckon? Have you ever sold with tenants in place with some sort of condition in the rental clause that you will pay for their removal if the place is sold to an owner occupier? Can this be done?

We sold a house with a tenant in place (twice). First time was good because his circumstances had changed and he wanted to move elsewhere. We came to an agreement that we would give him four week's notice to leave and those weeks would be rent-free. He was a lawyer, so we were very careful all this was signed off and in writing. No issues.

Next time we tried to sell with two real estate agents renting. What a nightmare that turned out to be. Took it off the market. Much better to get the tenants out first in my opinion.

 

[tgan]

Need to sell some properties to allow us to buy into a new market. Bank wont give us any more cash (

Have you spoken to a good broker or a new broker? You are only on property number 2 and you need to sell up already?
I would definitely exhaust the funding options before you off load.
What are your long term plans?

Also have u done your numbers? Is this property really bad?
What will be your getting out and your getting back in costs?

Good luck,
Tegan

 

[S.T]

Need to sell some properties to allow us to buy into a new market. Bank wont give us any more cash (

Have tried other lenders through a broker? Sorry, might be asking the obvious here.

 

[vmay]

Need to sell some properties to allow us to buy into a new market. Bank wont give us any more cash (

As I don't understand your market, I can only say that if a quick sale is possible now and that is important to you then go now. I assume the other investment is available now and any lost gains can maybe be picked up there?

 

[Roachy]

We're up to IP6. Need to sell to get funds for a block of units we want to buy.

Have spoken to brokers, who cant help at this time, much like the bank.

 

[Roachy]

I know it sounds like I have already answered my own questions. But I want to know whether the Stafford heights market is going to significantly change throughout next year, or whether its going to be stagnant and thus selling in March is the better option.

 

[marg4000]

I know it sounds like I have already answered my own questions. But I want to know whether the Stafford heights market is going to significantly change throughout next year, or whether its going to be stagnant and thus selling in March is the better option.

This is crystal ball territory and your crystal ball is as good as anyone else's.
No, not being sarcastic, simple answer is that no-one actually knows.
Marg

 

[Roachy]

Agree. But I am sure some REs on here can tell whether the market is spiking, plateauing or running hot within the area.

 

[zimby]

Personally I think there will be steady Growth in 2014.
Oct,Nov and December Last year was crazy with many investors at open houses.
You can also offer the Tenant " Incentives" to move out early.
Why not Advertise now, give notice, and by the time you come to negotiate a settlement date it should be around the time for the tenants to move( give or take a week or two)