Need you Advise Please

[WebBoard]

From: Ricky Tenorio


Hi,
I hope someone can enlighten me with my problem. I bought an investment property in Inala, Qld 10yrs ago for $72,000. The property never increase in value (current valuation is $50,000) and if I decide to sell, my real estate manager told me that I may get $60,000 with a bit of renovation. I still owe $67,000 and only paying interest only.
Currently the property is paying for itself.
My question is should I renovate and sell or keep the property?(God know's when will Inala properties go up in Value)
If I keep it, should I start paying Principal and Interest(to decrease my debt so that I can borrow to buy another property)or stay on Interest only?
I hope someone can help me as I have been stuck with this property and don't know what to do. Now I'm thinking of getting a home loan for myself to live in instead of renting here in Sydney.
Hope to hear from anyone soon..
Thank you for your time
Ricky

 

[Sim]

Reply: 1
From: Sim' Hampel


Will the property still pay for itself on a P&I loan ? Will it adversely affect your servicability if you keep it ?

If you can, why not keep it and pay it off on P&I so that it eventually will produce a nice increasing income stream for you. And eventually, maybe it will go up in value too ?

Only renovate if it increases your returns to do so. Don't overcapitalise. A new kitchen that costs $7K but adds only $10 per week in rent is not a good use of funds I don't feel.

 

[Jester]

Reply: 2
From: John P


No offence Ricky , but this place sounds like a real loser. Get rid of it!!! and buy a place in Sydney where you are living. At the very least you should get substantial capital growth and can borrow against the equity if required.

I mean if the place has not appreciated in 10 years and worse still it has gone down, I doubt you are going to see fireworks in the next 5 years

Anyway that's my 5 cents worth

Good luck in your decision


John

 

[asy]

Need your Advise Please

Reply: 3
From: Asy .


Have you thought about wrapping it to someone?

This might be a solution for you.

Worth considering anyway!

asy

 

[Michael Yardney]

Reply: 4
From: Michael Yardney


We all make poor investment decisions at time. You should look at it as a learning experience and then hopefully you won't make the same sort of mistake again.
The other mistake many of us make is to compound the error with rationalizations such as it will eventually grow in value. It must go up! If its a poor investment in a poor growth area admit it.
If you can afford to take the loss it may be a sensible thing to do so that you can take advantages of the opportunities elsewhere.
Good luck
Michael Yardney
Metropole Properties

 

[WebBoard]

Reply: 4.1
From: Anonymous


Why not leave the chips cooking and walk the dog

 

[michaelg]

Reply: 4.1.1
From: Michael G


Hey Anonymous,

Did you know you email address is displayed to those at home who get your posts via the email subscription option?

And there are neater ways to solve such problems, where other parties may benefit.

Regards
Michael Gruber

 

[NigelW]

Reply: 5
From: Nigel W


what's it renting for Ricky? I might buy it off you for the right price. That way at least you'll avoid paying agent's commission!

Cheers
N.

 

[WebBoard]

Reply: 1.1
From: Ricky Tenorio


Sim,
Thanks for the reply. If I pay P&I I will have to pay $70.00/month.
Thanks for your advise.

 

[WebBoard]

Reply: 5.1
From: Ricky Tenorio


On 10/22/01 6:04:00 PM, Nigel W wrote:
>what's it renting for Ricky?
>I might buy it off you for the
>right price. That way at
>least you'll avoid paying
>agent's commission!
>
>Cheers
>N.


Hi Nigel,
Its currently renting at $135.00/week.
If I sell It, I will sell it for $70,000 to cover the cost and pay off my mortgage. I dont make anything.
Ricky

 

[lawsjs]

Reply: 5.1.1
From: Jeremy Laws


i'll buy it for 65k, plus a free (very nice) dinner, sight unseen, but as long as a prop inspection isnt too critical. let me know.

PS I dont even know where it is - would someone enlighten me please - Inala? how far from BNE central? driving - realistically?