Rural IP - help!!



From: Dave Smith

Does anyone have advice for a poor soul with an IP in a regional NSW country town.

Here is the story...

Man inherits residential property, valued 70-80K - market is very, very poor - due to industry lay offs etc - cannot sell even for say 60K - has been trying to get an offer with 2 separate agents for 6 months - any offer

However... currently tenanted $140pw

What does he do?? Sell for whatever he can get, Continue to rent and borrow against the equity,

Has anyone got advice or similar experience - Put your thinking caps on for a creative solution

This scenario is relevant for any properties in a poor location, whether it be rural, main road, or close to something undesirable (cemetery etc)
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Reply: 1
From: Robert Forward

G'day Dave

You have some really good options with this place...

It is positively geared, so you are getting money for nothing. If however you do not want to keep the property you can "wrap it" to the tenant if they want to stay and purchase the property. This way you will also get a higher return on the property and you lose the hassles of fixing the place up.

But that is just one thought of a few.

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Reply: 2
From: Rolf Latham

Hi David

Sounds like Cobar, the hill or coal field

Enjoy the good return, that is pretty flash. If you can not bail, could you borrow against the equity at least - maybe ??


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Reply: 2.1
From: William Blake

Muswellbrook - pretty close - coal town
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Reply: 3
From: Neophyte .

Have you thought of promoting it as a B&B site. A few renovations and you could set it up for a quick sale to a city couple wanting to get out of the rat-race.

B&B may not be your thing - just trying to throw in an off-the-wall suggestion to get you thinking outside the square.
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