IP Under $100k in Regional Victoria-How to sell??

L

leitch1967

Hi All. :)
I have an investment property (Realestate.com.au property id: 103528680) in Horsham in Victoria that is an absolute steal. I am selling it at $96,000 and it has long-term (6 year plus) tenants who are paying $6760 p.a rent. It would require a bit of work to lift its rental return, but as is, it is an excellent earner.

I have had hundreds of hits on realestate.com.au and I really think it is well-priced. Have had a few interested, but investment market appears to have softened around here.
Does anyone have any tips or ideas on ways to promote my property? I have it listed with one agent here in town at present.
Any thoughts, no matter how way-out would be appreciated...:D
 
XBenX said:
Is this thread meant to be caveat emptor?
Click to expand...

That was my first impression, but then I read the post more carefully, and Leitch is asking for advice on "how to sell" as opposed to "trying to sell to someone on the forum" so I think it's ok..:) .. (although Where to buy probably isn't the right place either....)

Cheers,

The Y-man
 
7% return too low??

What sort of return would you consider in the country? Personally, I believe you would seriously struggle to get a higher gross return anywhere. If you can show me where to get these returns, I'd love to know :)
 
leitch1967 said:
What sort of return would you consider in the country? Personally, I believe you would seriously struggle to get a higher gross return anywhere. If you can show me where to get these returns, I'd love to know :)
Click to expand...

Leitch,

We have country properties which from day one returned in excess of 10%, as rents increase the return on investment has improved, however if we sold at current valuation the new owner would have a similar return to the one you have advertised.

I assume your experience is similar.

Personally I wouldn't buy a country property returning only 7% unless there were strong indicators for future capital growth. If at present better returns are not available then I simply would bide my time until the market improves or invest elsewhere.

This is the strategy I follow, however for someone who really wants to get in the market now it is a good return cashflow wise.

Regards

Andrew
 
i agree with bh - i found one the other day in newcastle (structurally good, no reno required and in excellent location) returning 8.8% - less fees and ongoing costs - so 7% in an area without much growth prospect, and work required on the property wouldn't interest me as an investor.

didn't snap it up as decided to keep the money in lieu of some major ppor reno's were doing - don't want to run out of cash when the roof is off ... :eek:
 
Don't look for too many reasons. The market doesn't always act logically.

Clearly if there are buyers there for that price then your ad isn't reaching them. Think about how you can change that.

Alternatively there are no buyers willing to pay the price you want. In this case you have three choices. Lower your price, make the property appear to be worth more or wait until the market changes. I guarantee that there will be a time where your current price will seem cheap. I just cannot speculate on the time frame.

Just don't make this harder than it seems and keep your feelings in check.
 
I did a quick search on Horsham. There are a bloody lot of properties for sale. When i was last in Horsham it was to get out of the 40 degree heat while in the Grampians.

And its half way to bloody Adelaide. I would need a 10% return to even look at Horsham.
 
toony said:
I did a quick search on Horsham. There are a bloody lot of properties for sale. When i was last in Horsham it was to get out of the 40 degree heat while in the Grampians.

And its half way to bloody Adelaide. I would need a 10% return to even look at Horsham.
Click to expand...

Now, now, take it easy.... I'm sure there are lots of attractive features in Horsham like...... urr...... umm....... warm, dry weather? :p

Cheers,

The Y-man
 
Hi Leitch,
Just doing the figures on your price of $96000 receiving rent of $130 per week.
Purchase Price $96000
Stamp Duty $2500
Solicitor $500
Insurance $300
Total $99300
Loan $99300 @ 7.34% interest only $140 per week.

Property Management $10 per week (7%)
Insurance per year $6 per week
Rates ($600 per year ?)$12 per week
Repairs ($400 per year?) $8 per week
Total $36 per week

Therefore Receiving $94 per week rent paying a loan off of $140 per week so I'm losing approx $46 per week in a regional town that doesnt appear to have good growth prospects.I would prefer to look at towns/cities that have better growth prospects. My opinion only.
Good Luck Selling
 
brisbane 04 said:
Hi Leitch,
Just doing the figures on your price of $96000 receiving rent of $130 per week.
Purchase Price $96000
Stamp Duty $2500
Solicitor $500
Insurance $300
Total $99300
Loan $99300 @ 7.34% interest only $140 per week.

Property Management $10 per week (7%)
Insurance per year $6 per week
Rates ($600 per year ?)$12 per week
Repairs ($400 per year?) $8 per week
Total $36 per week

Therefore Receiving $94 per week rent paying a loan off of $140 per week so I'm losing approx $46 per week in a regional town that doesnt appear to have good growth prospects.I would prefer to look at towns/cities that have better growth prospects. My opinion only.
Good Luck Selling
Click to expand...

Sounds like a pretty awful investment to me? Good luck offloading this one. Will need a bit of creative marketing.

GSJ
 
leitch1967 said:
Hi All. :)
Any thoughts, no matter how way-out would be appreciated...:D
Click to expand...

Some photos of the interior would be good - to be posted here so we can comment on it.


Repaint external white? That green looks real bad.

Land size - not mentioned on ad.

Address not mentioned on ad (one of my pet hates that often disqualifies a property off my short list if I have quite a few to look at)

Cheers,

The Y-man
 
leitch1967 said:
Hi All. :)
I have an investment property (Realestate.com.au property id: 103528680) in Horsham in Victoria that is an absolute steal. I am selling it at $96,000 and it has long-term (6 year plus) tenants who are paying $6760 p.a rent. It would require a bit of work to lift its rental return, but as is, it is an excellent earner.

I have had hundreds of hits on realestate.com.au and I really think it is well-priced. Have had a few interested, but investment market appears to have softened around here.
Does anyone have any tips or ideas on ways to promote my property? I have it listed with one agent here in town at present.
Any thoughts, no matter how way-out would be appreciated...:D
Click to expand...

Reduce your price and/or give it an inexpensive makeover (paint etc) to try and improve the appeal. One of our REAs moved from Horsham to our city as the river in Horsham was dry and he felt that the area was not going to improve in the short term. My husband also comes from the Wimmera, drought is affecting many of the surrounding agriculture so things (including population growth) will be effected for at least a few years I think. Friend of ours from Horsham who strip crops for a living, have recently moved to Qld to work in mining and this trend may explain why there are so many properties on the market at the moment. Supply and demand doesn't look like it is in your favour in Horsham at the moment. Make sure that the REA's price is based on recent sales on similar properties.
 
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