No show at home inspection - Even with price reduction

I'm a little stressed.

I reduced my unit as I wasn't getting any interest.

Property came on the market middle of January. One week ago I reduced by about $20k

Not one person showed up today at the home open. No one has called or emailed either.

Looks like I'll have to rent it out again. My tenant moves out on March 1st so I'll get my property manager to advertise ASAP.

Hopefully $15,000 in savings will get me through another 12 months and then I can look at putting it in the market this time next year. Hopefully the Perth market will have picked up a bit by then.

I have a $350k mortgage on a villa which rents for $290 PW

Hopefully I can get at least $200 PW for my unit that has a mortgage of $180 on it.

Another unit in the complex is asking 280 PW. Doubt very much they'll get that. But I'll be interested to hear how much it gets for it.

Luckily I'm paying just $750 per month mortgage on the place in living in.

Mum did say if I needed she could access some of her money to keep me going. So if I had to I could take a little loan from mum and dad and when I sell the unit I could pay her back with a bit of interest.

I do feel financially stressed but what makes me feel better is at least I have 3 assets to my name, there are plenty of Aussies with less money than me trying to keep their heads above water and they have nothing to show for it.

All properties are in Perth.

Any thoughts to help make me feel a little better ?

 

Have you looked at recent sales in this complex or similiar product in this suburb?

What your interest rate? So 350k does not include stamp duty ?

How much is this property costing you to hold pa, out of pocket expenses?? Everything ie strata etc

MTR

 

It cost me all up $8k to hold both properties in the past financial year.

Looking back, in hindsight I only worked 4 days PW for 6 months, plus i was spending a few hundred per month on personal appointments.

So I thinks that's why I was eating into my savings. I'm working 5 days PW again since last July and my $300 per month expense will be gone so that should free up some cash flow.

I'll just try to get through another year. An option is to fill out an income tax withholding form so as to help some more with cash flow.

 

@Alex P Keaton, I understand how you feel. Last year, my Mum passed and we had to sell her home as part of dealing with her Estate.

We had two reputable REAs (known to some of my siblings) give us an appraisal. They both gave us the same number and the family thought it was a realistic price (two of my siblings live in that city and one is into RE).

So, we signed up one of the REAs and listed it at that figure. We had six OFIs in the first fortnight but no genuine interest.

We dropped the price. Then another six OFIs in the next fortnight but still no genuine interest. So we dropped the price again.

This went on for two months. We got one really low ball offer which p.ssed off some of my siblings.

In the end, we withdrew the property from sale and I made an offer at a figure above the low ball offer. All my siblings accepted it.

Morale of the story: if one really wants/needs to sell and there is little to no interest, keep dropping the price - sooner or later, interest will be generated.

 

Hi. Thanks for taking the time to reply.

I don't think I'm willing to keep dropping the price especially when there is still hope I can hang on for longer. Well I think there is.

I didn't want to have to do this but maybe it could be an idea to pick up a 2nd job for a while. I do find though that 1 full time job is plenty enough for me but if I got another job even paying just $5000 pa that will help to keep me afloat.

 

Why invest over there ? Its because you live there right .

Why not Sydney ? You will get better growth and guaranteed tenants !

Why not Regional NSW towns , Wagga Wagga, Dubbo , Wellington , even Scone has gone up , you could of got Lithgow cheap it has doubled.

You dont even have to come over to look just get someone from Airtasker or whatever to video it for you .

Thats where your going wrong by buying in Perth .

Start being versatile and go out of your comfort zone

 

Not sure it is a good investment/idea if you need to take a second job to keep it going. Especially that there might not be any certainty that there will be recovery anytime soon. If the rates go up it will be even harder to dispose. Maybe concidered if you putting more and more money into a dud investment.

Sometimes it’s worth to cut the losses. Read @MTR thread about “It is OK to sell”. Sometimes cutt Ng lose is a good decision.

 

Yeah. If only I had a crystal ball lol.

If I had of bought in Melbourne or Sydney in the past 10 years I'd be sitting pretty.

Perth has not moved in 10 years and I have been stuck playing the waiting game.

Anyhow I just have to try to get through and hang on. Its a learning lesson that's for sure.

 

Hi. Something to think about thanks.

Yeah I read that thread. It's a good one.

It's hard to know what to do as you don't know how things will be in 12 months, how things will be in 2 years.

I was hoping for at least the $51 k from the sale

It couldn't hurt though (if I can afford to) to take it off the market rent it out and try and sell it again in 12 months. And it's not like I'm going to use the proceeds to by another IP. I'm just wanting the money as my cash buffer against my ppor.

 

if your finding it stressful then either sell one IP.

Or go on a interest only loan until u catch up

Also can u have extra income in your own home by having someone share with you , a student or something ?

Dont invest in those places like Perth , etc go for the big cities such as Sydney it will always grow faster and more tenants.

You can get Studios in Potts Point / Kings Cross right now for 400k and rent for 450 /480 week. With no shortage of tenants.

They will go up again in the next few years

 

Other things for you to consider is the opportunity cost. Putting money into a dead investment means forgoing opportunity to gain much more from investing into a growing investment.

No one has a chrystal ball. But you can sit down, do your calculations and figure out if it’s worth pumping money into it.

My imaginary neighbors have a **** house. It’s falling apart, they keep fixing it. If they have sold it 5 years back they would have probably made more money then now. Mind you that’s not counting the dead money they put into it, like rates, maintenance that is way above average etc.

 

So I'm thinking if I dropped it another $10k I think it would sell then. I'd make $40k from it. It's better than nothing or making a loss!

I just want to pay down some debt and so this noose isn't so tight around my neck. I'm feeling very stressed financially and I'm tired of living this way.

Ok I guess that's what I need to do then. I'll drop the asking again.

It will give me the chance to start again. To start fresh. And I'll be able to save a bit of money and hopefully I'll be able to put the rents up soon on my villa.

Thanks.

 

All loans are already IO but good thinking.

Nope my place is one bed. I can't share.

I think I learned my lesson, next time I invest I think I'll buy in another state. Yep Sydney when it's on the rise sounds like a good idea.

In the meantime I just want to catch my breath save some money and build a but of a buffer. I'm not keen to invest for a good while especially as I have zero equity in my villa IP that I'd want to use and zero equity in my ppor.

 

I don't think I'd be able to get a loan for $400k on my $65k income though.

 

Wishing you good winds mate. Sometimes the hardest part is to admit we are wrong and change strategy. Whatever you decide I hope it will be much easier!

 

And you think you have problem's have a read of the link below,and it's only the start..

Brisbane apartment prices hit four-year low, owners accepting 'cheeky' offers

 

You won’t be starting again. You are already a lot further up the knowledge tree than those still standing at the base, not knowing how to begin.

Most investors I know have all made mistakes. And we continue to do so.

The trick is to learn how to only made the same mistake once only AND to hope you don’t make a mistake that completely wipes you out. I have friends and family that have done both.

From what I am reading, you are nowhere near this situation.

If this investing gig was easy, then we would all be filthy rich .

 

I don't mean to be the bearer of bad news, but I'm not sure that it is going to get better before it get's worse.

Sometimes you might need to get out and take the hit, before negative equity builds up and you are put in a worse position

 

65k?
Wow you are doing better than me , I am very poor and earn far less than you (51,000) in Salary working as a Clerk Monday to Friday.some earn less than me at 48k

Many of my friends are the same, i have been forced to taking in student share, i have been forced to buy my clothes from the Salvos .

Yesterday i was at Bondi junction i bought Asian takeaway after 3pm in bulk $5 per container.
Yesterday i got onto abus from Bondi to Surry hills and had no transport card, th driver driver didnt seem to care and looked away, i am forced to do this., i felt like a criminal , and even getting to the stage of dumpster diving


I am forced to do this as i just bought anither IP and now am very poor.
I have stopped my Salary Sacrifice into my Superfund to pay more of my Ip's

Now another thing, if your desperate you can sell 50% of your IP or even go 50/50 in a IP simewhere else

 

A lot of it is due to timing, get the timing wrong in any market and you can sit around for years with little or no growth.
The same may apply to Sydney in the next 10 years , especially if there is a change in government next year and the new APRA rules.
We have Perth property and its business as usual , but we bought in the late 90s and house prices have "almost doubled every 10 years" , well quadrupled in the first 10 years then dropped slightly and not really moved since.
We have friends that kept re-investing in Perth ,and got burnt a bit.
We also know of some that bought in Sydney at the last peak and sold before the current big price rises , ouch.
Is there any way you can offer a "cash incentive" to FHB to try and make the property attractive to them.
Good Luck