Sell underperforming 1 bed IP & Opportunity cost ?

[Alex P Keaton]

As long as I keep it to under a $1000 I'm happy with a couple of grand in mortgage payments I'll have to cover whilst it's vacant. I'm still contemplating staging it. That would cost another $2 k, so all up around $5,000. I'm not sure I'd recoup the cost of the staging though.

Also what if the buyers ask questions about who lived there/who lives there? She would say it was tenanted, but what kind of tenant would have such nice looking furniture & be decluttered. Wouldn't it be obvious the place is just for show and it's not lived in. Ie there won't be clothes in the wardrobe. What about the fridge? Do you hire a fridge with food.... That kind of thing?

 

[INVSTOR]

Are you able to post a pic of your bathroom? We've done a couple of basic reno's where for a unit we regrouted bathroom shower /bath. Replaced silicon around shower and basin. Left existing tiles, etc.
just recently did a minor makeover of new cistern (left existing toilet bowel) had to replace and regrouted some tiles as holes didn't match. You would need a plumber to do this and possibly handy man or tiler. I also recently used a product called Masterline tile grout colourant on my shower that became stained from mildew. It came up looking great. You could do yourself. It was time consuming though. I think it took me 4 hours to do two walls of a shower. We fitted some new taps and shower head that were cheap from Bunnings. Fittings were around $100- again, would need plumber to install. I would never paint a toilet. You could replace the entire unit for around $500. In your case possibly worth it.
Another Reno [ip], we just etched and tiled over tiles - paid tiler to do so. Looks quite neat 12 years on.

 

[Alex P Keaton]

This whole thing is starting to stress me out haha. I don't know the first thing about bathroom renos cleaning, restoring etc. I think I'll hire a jack of all trades handyman to do it all for me!

Can anyone recommend someone in Perth?



I might as well stage it! I really want to get out of here lol. My sister is going away on holidays for a week and I'm itching to house sit.

I'll recoup most of my expenses once it's sold anyhow and if I need to I'll just stick around for an extra few months at my parents to save a few thousand more! The important thing is to get rid of this ip quick smart!

 

[sanj]

As long as I keep it to under a $1000 I'm happy with a couple of grand in mortgage payments I'll have to cover whilst it's vacant. I'm still contemplating staging it. That would cost another $2 k, so all up around $5,000. I'm not sure I'd recoup the cost of the staging though.

Also what if the buyers ask questions about who lived there/who lives there? She would say it was tenanted, but what kind of tenant would have such nice looking furniture & be decluttered. Wouldn't it be obvious the place is just for show and it's not lived in. Ie there won't be clothes in the wardrobe. What about the fridge? Do you hire a fridge with food.... That kind of thing?

You should be focusing on what the buyer thinks if the property is looking sloppy and marketed badly like it was before.

It cannot be staged with tenants in there but feel free to sabotage your sale again by trying it with tenants

 

[Alex P Keaton]

It didn't sell last time so I realise that in order to move it I'll have to do what it takes. I'll have this one shot.

I wonder what price range I should ask for, maybe $235 - $255? What do people think?? Maybe it would look more valuable being staged and bathroom cleaned up?

The other unit that sold a few weeks ago went for $230 & both the kitchen & bathroom are renovated.

 

[Jamie_]

The other unit that sold a few weeks ago went for $230 & both the kitchen & bathroom are renovated.

If that's the case then i'd say yours is worse $220 then?

 

[Alex P Keaton]

If that's the case then i'd say yours is worse $220 then?

Nah, I don't think so.

The bank valued it at $235. I guess I'll just have to wait and see what the market will pay. I think someone will buy it in the $230's range at least.

 

[Alex P Keaton]

All the other units in the complex went for between $230 & $249 in the last 12 months. Some were renovated, some weren't.

Actually one unrenovated unit sold for $205 in June 2013

One with a renovated kitchen and unrenovated bathroom sold for $230 in April 2014

 

[Jamie_]

All the other units in the complex went for between $230 & $249 in the last 12 months. Some were renovated, some weren't.

Actually one unrenovated unit sold for $205 in June 2013

One with a renovated kitchen and unrenovated bathroom sold for $230 in April 2014

So,
fully unrenovated - $205
half renovated - $230
Yours is unrenovated = ? 230?

 

[Alex P Keaton]

So,
fully unrenovated - $205
half renovated - $230
Yours is unrenovated = ? 230?

Mine has a renovated kitchen with large amount of cupboard space, with un-renovated bathroom.

 

[Ed Barton]

Just a couple of questions.

What can you paint when using the White king?

Can you actually paint over things like the toilet, the basin, cupboards, etc as well as the shower recess and bathroom tiles, I read you can't paint the floor though.

Also maybe if I get the bathroom looking decent I might not have to stage it.

Unless I'm missing something White King is a bleach (Chlorine), not a paint. It will make everything white!

 

[pinkboy]

Unless I'm missing something White King is a bleach (Chlorine), not a paint. It will make everything white!

I presume a mix up with the paint 'White Knight' used in bathrooms.

pinkboy

 

[Ed Barton]

Nah, I don't think so.

The bank valued it at $235. I guess I'll just have to wait and see what the market will pay. I think someone will buy it in the $230's range at least.

When?

You won't sell it, because you won't accept market price, IMO. Your unit seems to be 'special'.

Could you 'stage' it yourself? It's a one bedder, No? Beg, borrow and steal off relatives and friends? Buy shitty old bed/s etc off gumtree and sell them when you're finished staging? A trucks hire for a day to deliver and another day to take out = $200. You will need another person to help you = a case of beer.

 

[Ed Barton]

I presume a mix up with the paint 'White Knight' used in bathrooms.

pinkboy

White Knight to the rescue as usual!

 

[pinkboy]

When?

You won't sell it, because you won't accept market price, IMO. Your unit seems to be 'special'.

Totally agree here with Ed. In May this year you had a first offer of $230k, and scared him off with probably a ridiculous counter offer of circa $250k. Had you countered with something reasonable like $240k you would have got around your current comfortable price around $235k and be done with it. It's not what you 'need', it's what the market will pay.

You're making hard work of this and over a long time frame.

pinkboy

 

[Alex P Keaton]

I'm moving into my Dianella ip

Mum and I had a look at the property yesterday. It's actually in pretty good condition! Not much work needs to be done! Just painting, cleaning of the grout and new blinds.

I went through the figures and have decided to move into it. My Highgate property is positive cashflow by $400 per month and if I use that $400 profit I make from te rental income then my mortgage payment on my Dianella unit will be tiny... Only $400 per month!!!

What ive realised is I have options. I will live in my Dianella IP for a few years with a very small mortgage, wait for the market to pick up and then either sell it (which would be the best option) or keep it and rent it out. In the mean time when the rents pick up again my Highgate unit will be even more positively geared.

Good times ahead! It's a no brainer! Or if I'm happy/dont mind living there I there I could just continue to live there using the positive cash flow from my highgate ip to help cover half my Dianella ppor mortgage!

I'm happy and excited to be moving in! Hopefully sometime in March I'll make the move! Yey!!!

 

[Alex P Keaton]

I'm moving in at the end of next week! Wooohooo

I'm so happy!

Dad has become more aggressive and annoying over the last year. He is in the early stages of dementia

 

[baby blue eyes]

Congratulations, enjoy the freedom!

 

[Alex P Keaton]

Thanks!


...............

 

[Alex P Keaton]

September 2014 Update

I'm thinking I will hold my Dianella for a while longer as currently I'd be lucky to get between $15,000 - $25,000 profit. It's just not worth selling when I'll make such a small profit and it's not costing me much to hold. I may look at selling when I'm ready to invest again in a few years time, or if I find I need the cash in my bank account for SANF.

I plan to move back into my PPOR in January. I'm happy

Well... I moved into my ip in February and I plan to live here for the next couple of years or so or until the market improves.

Yesterday I found out another unit sold for just $227 k, so if I were to sell today id make just $20k profit.

My mortgage is $199 k which is affordable for me. However I am really missing the highgate lifestyle but will have to tough it out for 2-3 years or so till the market improves.

I've even thought about renting something in highgate and continuing to rent out my highgate ppor as its got very good positive cashflow even after having to reduce the rent from $340 pw to $300 pw due to the high vacancy rate. I don't think I like the idea of getting kicked out if I rented though if new owners want to move into it.

I'm working in the city, I pay $2 each day at East Perth train station car park and walk to work. It turns into a 1 hour long commute each day, which is a hassle but oh well... Guess you can't have everything. I'm enjoying the walks, it takes the same amount of time as if I caught the yellow cat in from claisbrook.

I miss riding my bike in to. It's a 10 min ride from my highgate property. From claisbrook cycle path to the Perth arena.

Hmmm what to do. What to do?? What would you do??

Now that I've spent a bit of money setting myself up here I'll have to stay at least a couple of years as I hate moving too often.