Sell underperforming 1 bed IP & Opportunity cost ?

Alex P Keaton said:
September 2014 Update

2013 - 2014 eofy Holding expenses

IP cost me $27 per week after tax to hold.

To sum it up:

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.
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Tenant is leaving January 20 and I will have to drop the rent $20 pw from $290 pw to $270 pw. I can't afford to hold it (along with my new ip I just bought) and move back in to my place in Highgate so I'm going to sell.

The other unit sold a few weeks ago for $230 k. I might have to lower my expectations of the amount I can sell it for. I reckon I'd be happy to make a & 15 - 25 k profit now!
 
That's what happen when the market turns, we all lower our expectations and accept a lower price those who do it straight up will be ahead of the game....

Fall back - do you have to move to Highgate?? can you stay where you are if you have to??
 
MTR said:
That's what happen when the market turns, we all lower our expectations and accept a lower price those who do it straight up will be ahead of the game....

Fall back - do you have to move to Highgate?? can you stay where you are if you have to??
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I'm not sure what to do.

Yep i can stay here for longer, my parents are happy to have me. :)

Option 1
Is to not re- lease it but put it on the market when tenant vacates in January and try to sell it ASAP as I'll be having to fork out mortgage payments. This could be very risky as if it takes a few months to sell thats around $3000 in mortgage and expenses I'll have to fork out whilst its sitting vacant.

Option 2
Which is probably the most sensible one!
Put a tenant in there for 6 months at $270 per week, and continue to stay here with mum and dad for a bit longer. Put it on the market in spring when they reckon the market picks up a bit. After the 6 month lease is up (in July), i'll revert it to periodical.
 
Fwiw I think option 1 is far superior. Option 2 has too much of a wait and see, hope for the best kind of feel to it and that is partly why you still are stuck with this property.

Imo get rid of tenant, make sure the place looks good (I'd stage it personally), pick the right agent, price it well and you will give yourself the best chance for a quick and good result. In terms if reverting to periodical yous still be selling it with a tenant in there which is far from ideal
 
Agree with sanj to sell early in yr than later. Perth market may be on the slide, and if you leave it til spring, who knows where the market will be at.
 
Yeah. I'm seriously thinking about option 1 now. Sell it & I'll have a decent cash buffer. I'll be able to move back to my place sooner rather than later. I'm aiming to move back in March. I really need my own space, 3 years is long enough. It was only meant to be a stay of 1-2 years.

Now do you think I should start advertising immediately when the agency reopens on Jan 5, and walk people through the home opens with it still tenanted or wait until the tenant is gone and its tidier looking? There are pros and cons to both.
 
Alex P Keaton said:
Yeah. I'm seriously thinking about option 1 now. Sell it & I'll have a decent cash buffer. I'll be able to move back to my place sooner rather than later. I'm aiming to move back in March. I really need my own space, 3 years is long enough. It was only meant to be a stay of 1-2 years.

Now do you think I should start advertising immediately when the agency reopens on Jan 5, and walk people through the home opens with it still tenanted or wait until the tenant is gone and its tidier looking? There are pros and cons to both.
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Wait until it's empty. Clean it up, maybe give it a weekend of hard scrubbing and tile paint. Stage it and sell it quick.

Staging will cost money but it will sell quicker, look attractive in ads and make it seem higher value
 
Good idea about the staging. I'll look into that.

I wonder how much that would cost though.

Does anyone have any tips on staging? Maybe I could just stage it for the first home open & then send the furniture back.
 
westminster said:
Wait until it's empty. Clean it up, maybe give it a weekend of hard scrubbing and tile paint. Stage it and sell it quick.

Staging will cost money but it will sell quicker, look attractive in ads and make it seem higher value
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Sorry if this sounds like a dumb question but what does tile paint mean?

Thanks
 
Alex P Keaton said:
Sorry if this sounds like a dumb question but what does tile paint mean?

Thanks
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Tile paint is a special paint made by White Knight and other manufacturers that you can paint over existing tiles to make them look better. From recollection your shower was showing its age.

I have also had a friend paint her floor tiles as they were rather unattractive.

Alex P Keaton said:
Good idea about the staging. I'll look into that.

I wonder how much that would cost though.

Does anyone have any tips on staging? Maybe I could just stage it for the first home open & then send the furniture back.
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Most of them rent the furniture for a month. It was about $3.5k for a 4 x 2 that I staged a few months ago. It made the place look much bigger.

It paid for itself really.
 
Alex P Keaton said:
Good idea about the staging. I'll look into that.

I wonder how much that would cost though.

Does anyone have any tips on staging? Maybe I could just stage it for the first home open & then send the furniture back.
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It would be around the $2k or so mark for a month as I suspect as the price included delivery, pickup and a fee for the designer to put everything together.

Don't be penny wise and pound foolish, keep it until you sell or at the very very least month if you haven't sold and gone unconconditonal by then.

Typically cost per week to extend after that is cheaper than the initial figure.

You are going to have to put the hard yards in to give yourself the best chance for a good result, I believe there were a couple of things from when your tried to sell before that could be improved on.
 
I read your message before you deleted, don't know if this would be worth considering. I haven't used company myself but maybe worth calling to see what services they offer and if they could tidy up your bathroom on a budget. I saw info on Facebook, maybe take a look at some before and afters. They are located at Aveley.
 

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INVSTOR said:
I read your message before you deleted, don't know if this would be worth considering. I haven't used company myself but maybe worth calling to see what services they offer and if they could tidy up your bathroom on a budget. I saw info on Facebook, maybe take a look at some before and afters. They are located at Aveley.
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Thanks I checked out their Facebook page, and their photos. Sounds like a good idea. I'll give them a call.

What I could do is get a cleaning company in, and then paint with white king.
 
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.
 
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