Sell now or Reno Sell 9mths or other

[quoll]

G'day

After some suggestions, advice, a bit of knowledge to assist in the decision.

We have a couple of nice units on 1 title that we bought in joint names (not in a trust) looking at selling them.

Reasons to sell
1 - in joint names not in trust
2 - will let us pay out PPOR debt
3 - reduce LVR so we can buy more in trust

99% selling unless someone comes up with really good strategy we don't know about.

Had the REA go around today to take photo's and when he came back he was impressed with the units, a bit of work and you could get around $240k each if community titled, reno'd, get rid of ferral tenants. Sell now around $380 for both, tenants will turn off most interested buyers, very feral tenants, furniture looks like from rubbish dump and not much of it, smells really bad.

So $380 now compare to $480 in 9 months when tenants lease is up (less reno cost $10k cosmetic + com title), got both tenants in June about 4 years ago.

What other options are there?
What haven't we thought of?

That is the question I pose to the group.

Thanks for your time.
Cheers
quoll

 

[BV]

Quoll,

I don't know what the market will be like in 9 months time, I am guessing that it will have cooled off by then in which case you might as well keep them.

Do you think the tenants will want to stay of you put the units on the market for sale now?
You could put them on the market and give the tenants the option to break the lease and leave
Or perhaps you could offer them a weeks free rent?

Cheers

 

[steveadl]

Where are the units? Sounds like your PM is not the greatest?

If you're going to sell, get your (or another PM) to get the tennants to clean up their act, then put it on the market. Personally, I'd probably keep them, increase the rent when the current lease is up, or even give them notice of an increase now (depending on lease terms), and then another one when the lease is up, that way you'll either get rid of them or increase the yield - makes a more attractive investment if you keep them, or increased sale price on the higher rent.

 

[yadreamin]

Why not suss out what it would take to move the tennants on right now.
Do your reno and then decide to hold or sell.
Weigh up your gains by throwing $1000 in the face of your ferral tennants. I am 99% sure l know what their responce would be.
Find out all your rights as far as home open and inspection times if you put the units on the market now.
It seems to me that you may be throwing away quite a few $$$s to sell as is now.
Would the reno and new tennants make the units +cf. If so that could help pay off the PPOR.
Is not having these units in your trust really that big of a deal?
cheers yadreamin

 

[quoll]

Spoke to a surveyor today, the community title will take 6 months and cost about $12k mainly state / fed / local taxes.

Agent took photo's today, will put them on the market and see what happens. Bit of a toe in the water and see what is out there.

Thanks for the replies.

The way these tenants are, I think a bit of cash would get them on their way quick smart.

Cheers
quoll

 

[quoll]

Where are the units?

Seaford about 800m from the beach.

Sounds like your PM is not the greatest?

Was using Ray White who found the tenants, using a different PM now. These guys pay their rent, need poke with a stick every now and then but. All in all they are OK, I don't live near em.

#1 reason for buying was to help pay off mortgage on PPOR. Lost sight of the goal over the last couple of years. This gets the plan back on track.

cheers
quoll

 

[steveadl]

Seaford about 800m from the beach.

Was using Ray White who found the tenants, using a different PM now. These guys pay their rent, need poke with a stick every now and then but. All in all they are OK, I don't live near em.

#1 reason for buying was to help pay off mortgage on PPOR. Lost sight of the goal over the last couple of years. This gets the plan back on track.

cheers
quoll

OK, well as long as they pay, they're good enough for me!

Tough call mate, especially since the plan was to help you pay off the PPOR and this can get you back on track. Personally with the Adelaide market over the next year, even if you are going to sell, I'd wait until next year as I reckon you'll see some nice gains, especially with shoping centre expansions and other development down there.

Let us know what you decide...