It also depends on the other unit for sale in the complex.
If the other unit is in poor condition as you say, how much more do you want for yours over their asking price?
Hi,some good points...
I would hope for about 10k more than the other unit but realistic expectations and after some negotiating from the buyer I might expect about the same as the other units list price. I think they have overpriced their unit for the shape it is in. A fully renovated unit in the same block (of 12) sold for the price I'm hoping to get 6 months ago only weeks after listing. The unit is not renovated at all and the pictures show someone messy living in it and it looks ugly and untidy.
People may see yours as good value, as compared to an unrenovated comparable for only $20K less for example. If you wait until it sells, and it sells cheap, then that low recent sale in the complex is still likely to affect your sale.
Buyers are getting smarter and often have access to online resources that can tell them the sales price for other units in the block - it also may come up on a valuation.
Depending of course on the prices and more information, it could be a smart move to price yours realistically and beat the other unit to a quick sale.
Yes some things to think about... Mine is only painted and carpeted although the kitchen and bathroom were renovated 3 years ago by previous owner.
To make it as good as the one that sold I would have had to take out the wall to make the kitchen and lounge open up. I would have done that but ran out of time. Otherwise, it's a nice unit and much better than what it was before I done the work. It also gets a lot more rent even though it was the highest rent maker in the block prior. It has the best views in the complex and probably is the best unit because of that mainly.
I'm not sure what the other unit sold for? The data was not online last time I looked but probably is now and I will check it out but I would say they got a good price as it looked nice in the photos. The thing is that if I got mine valued now it might be quite high because of that sale but it could also lose points if they see this other one has not sold for 6 months listing. If it did sell then I would say that is a good thing as I'm not sure investors would be so happy to see that one not sold for so long and if it sold the price is quite good for the condition so that should also help.
If I list it then I would probably list in $9,000 above the other one but offer the agents special commissions and be negotiable for a quick sale. I will come out after paying the mortgage with a nice amount of cash to use on my Internet business and it will make much more money than keeping the place at least in the short term. Later I will buy more properties when I have more income but for now if I have the cash I can turn that into a lot more money as I have some solid plans to use it. So if I lose 10k or whatever it's not a big deal as I could make that back in a short time with my Internet business.
The only thing that puts me off selling it is it's my last property and I do like that fact I do have at least one property. But I have no cash right now so I need to do this to fulfill my plans. But the main thing I'm worried about selling it is if it also ended up sitting and not selling and in 6 months time it's still there but with annoyed tenants etc.
Plus my income has been low in recent times and if I wanted to buy property again in the future it might be hard to get a loan when banks see my banking history of falling back from what it once was.
So deciding to sell or not is difficult but I would like to get back overseas and be with my fiancee and get working on my Internet business and not having to get out and do a 9-5 job which I will have to do soon. But I'm worried if it does not sell then nothing is going to change either....
Also - having tenants and a healthy yield will appeal to investors. Is it an apartment that would appeal to investors (who's buying in the area, are vacancy rates low, other owners in block investors etc?).
If it's an investor than a stable tenant will definitely appeal. If someone falls in love with it but wants to move in at settlement, you may be able to pay the tenant out. Often a $1500 once-off is enough to move them along (especially if they've been irritated by the sales process).
The area is rising fast in prices, I'm amazed at the prices for property but it's in a good area but the complex is getting a bit dated now although it's in good shape but compared to all the luxury apartments selling around the same area it's looking like one of the cheaper places now sadly. But the good thing is the area is in growth and demand.
having the high rent income is good yes and it must appeal to investors but the only problem is that other units in the complex are getting lower rents than mine, I just think the other owners are not up to date or are not that worried about getting good rents but that could cause problems if investors see mine as priced a lot higher.
Moving the tenant on should not be a problem as their lease expires in February but then again I think even then you have to give them quite a bit of notice these days.
The unit does tick all of the right boxes:
high yield
close to mid city
in growth area
in university area
5 minutes walk to shopping
near public transport
central to various malls and suburbs
close but not too close to huge sports stadium
2 bdr
2 car carport
top views
quiet street
close to hospital and schools
I do beleive it could be worth another $50,000 or higher in 1 year with what I'm seeing with the area growth.