Selling property to break even. Moving on

[Joeyv]

So basically bought a property 2 years ago with intentions to develop.

Realised no profit in developing now and property is hard to hold as it is in bad condition and the area it is in will only attract bad tenants

Thinking of selling as is and moving on

When I bought it I didn't have any idea how much development cost

Have had appraisal and should be able to get my purchase price


Everyone is always adding IPs and here I am subtracting while hoping to break even :|



Thoughts?

 

[The Y-man]

Sometimes you have to bite the bullet.

If you can sell for break even, great!!

I've known people who had to sell at a loss, so you're still ahead of them.

We sold our early IP which we bought off the plan when we realised the holding costs were going to be huge.

The Y-man

 

[LeoT]

Everyone is always adding IPs and here I am subtracting while hoping to break even :|

Thoughts?

Joey, put it down to a learning experience. I wouldn't worry about others buying IPs. Anyone can buy IPs, but buying IPs that are consistent with ones goals and has great CG prospects in the short to medium term are 2 VERY different things.

The best way to avoid just 'buying IPs' is to educate yourself on property investing as fast and thorough as you can by actively reading, reading, asking, asking, networking and doing.

Good Luck mate.

Leo

 

[D.T.]

Is it Dav Park, Joeyv?

 

[albanga]

Joey, put it down to a learning experience. I wouldn't worry about others buying IPs. Anyone can buy IPs, but buying IPs that are consistent with ones goals and has great CG prospects in the short to medium term are 2 VERY different things.

The best way to avoid just 'buying IPs' is to educate yourself on property investing as fast and thorough as you can by actively reading, reading, asking, asking, networking and doing.

Good Luck mate.

Leo

This is brilliant advice. It takes absolutely zero skill to purchase an IP with no goal in mind. As long as you have a job to service a loan then basically anybody can go out and buy an IP.

The second thing Leo mentioned though is by far the most powerful. EDUCATION! It will never cease to amaze me how many people invest without any of this. I know people that have purchased property without even reading a single book, literally they do not know the terms negative and positive gearing.

If you take your situation then really the reason your in this position is due to that exact thing. If you had your time again I am sure you would read up on developing, speak to professionals, ask questions in these forums and pretty soon you would start to get an idea of the costs involved. I imagine you might even have a pretty spreadsheet

Education alone will not make you a master, it will take actual experience but it lays a very solid foundation to build that experience onto.

 

[Ace in the Hole]

Sell it and move on, otherwise you will have to plan around it, rather than work to your plan.
Wasn't too expensive for this lesson.