Unable to sell my Brisbane Bedsitter - ideas?

Hi,
I've had my property on the market for over a year, had an offer at one stage but the contract end date lapsed without any closure - later found out they couldn't get finance.

Anyway my property is a very small bedsitter (27m2) so I think the main problem is that people can't get loans for properties under 50m2 very easily.

It's located just outside of the CBD - South Brisbane, so the location is good I believe.

At the price I'm asking, it nets around 7% return - there's lots of options with it too, it's located in a hotel and you can either go into the pool and get your share, or get a set weekly amount from the hotel, or rent it out yourself without the hotel - yet there's little interest.

I've got the property listed with 2 seperate agencies, but they rarely call me, get maybe a 1-2 month update.

How else can I get the word out there, or try and find an interested buyer?

Should I try and get international students looking at this somehow?

The property is making me money, so it's not like I've been desperate to sell, but I'd rather get a bit of cash up against the home loan and be in a bit more of a secure position.

Happy to give out further info about the property, but don't want to seem like I'm just trying to advertise it...
 
For a newbie like myself (without lots of capital already built up), the problem would be the "it's located in a hotel". I have had a look at a few around brisbane city itself and also around southbank.. anything that has the word hotel, motel, managed apartments, etc is a pain in the backside for loan. Well it certainly is for CBA not so sure about other banks..

GL with the sale..
 
Try advertising the property on a commercial website ie. www.realcommercial.com.au or an advert in the business section of the newspaper. This could attract an investor or a corporate buyer who needs accommodation for their employees in the area.
 
Last edited:
Try advertising the property on a commercial website ie. www.realcommercial.com.au or an advert in the business section of the newspaper. This could attract an investor or a corporate buyer who needs accommodation for their employees in the area.

Or what about uni campus noticeboards (especially with heaps of overseas students) or an ad in overseas student newsletters/ethnic newspapers?

Some might be able to afford it or have parents to help.
 
Personally, knowing what I know now, I'd hang on to it if possible. But that's me and my situation...

I'm not really going to help much, I was just attracted by your username. I love guinea pigs, so under-rated. Or are you using a double meaning?

Welcome to the forums :)
 
For an unpopular property (i.e., one appealing to a very limited market), I think you are going to have to sell on a yield greater than 7% to have any hope of attracting an investor. After all, the purchaser will face the same problems when they decide to sell.
Marg
 
You might be asking too much for it. Increase the rent or lower the price?

The property is making me money, so it's not like I've been desperate to sell, but I'd rather get a bit of cash up against the home loan and be in a bit more of a secure position.

Alternatively you could look at a debt recycling senario to help get more money into your home loan.
 
Thanks for the replies everyone.
I *think* this is my unit, if not it's in the same complex anyway :)

http://realestate.com.au/property-unit-qld-south+brisbane-106124799

I agree with everything said above, so although I haven't addressed you invididually, the below should cover it all :)

I can't increase the rent easily - but it's a good point, maybe I should look at doing it through an agent again. If I can get a 6-12 month contract for someone living there, maybe I can get more than I currently am. I should get an agent in to give a quote.

Although, it's just starting the busy period where I'll make a lot more money each month. If I did the calculations on the return in a few months, I think it'll be over 7%.

Noticeboards etc are a good idea, but I'm not located in QLD so that's much more difficult. How would I advertise to uni students or their parents?

I think the biggest issue is the loan aspect. I'd be open to some other options rather than a standard straight forward sell, but I'd still need to find an interested buyer, and someone in QLD to do the ground work.

Got any links on the debt recycling stuff? Haven't heard that term before and just did a quick google, but didn't completely grasp the concept. I already have a LOC account used only for investment purposes which makes it easier?

Personally, knowing what I know now, I'd hang on to it if possible. But that's me and my situation...

I'm not really going to help much, I was just attracted by your username. I love guinea pigs, so under-rated. Or are you using a double meaning?

Welcome to the forums :)

Can you give any more details about this? Yes I'd like to hang onto it ideally, but I'd rather be in a safer position and a bit more liquid.

Username is just because I like Capybaras :) google if you don't know...
 
GGP,

Very major issue with this - it isn't a unit in most people's eyes - it IS a hotel room. The most glaringly obvious thing - NO KITCHEN!

This is very much a "commercial property" transaction - this isn't "residential" from most people's perspectives.

It's really going to come down to price.

The Y-man
 
It matters for the very reasons you are posting here - there are very limited resale prospects which greatly limit capital gain.
This property can only be used as a hotel room.
Marg
 
Why does that matter though, if you're buying it as an investment?

Hi GGP,

The main issue then becomes whether better returns can be had for similar properties.

For example, in this space, you are technically competing with things such as RE Investment Trusts, which can have much more liquidity, smaller capital requirements and possibly a higher return.

So as an example, faced with a choice of buying the unit you are selling, or a share of a major hotel run by an international chain (and getting their share of the "rent" and depreciation from the business).....

Cheers,

The Y-man
 
Top