Asking for a friend...

Discussion in 'Investment Strategy' started by jprops, 26th Sep, 2016.

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Hold or sell?

  1. Hold

    4 vote(s)
    57.1%

  2. Sell

    3 vote(s)
    42.9%
  1. jprops

    jprops Well-Known Member

    Joined:
    24th Sep, 2015
    Posts:
    891
    Location:
    Sydney
    I have a friend (really) who started off in property quite well, with a couple Sydney established properties. He then used that equity to purchase two 1 bedder apartments in Brisbane (fortitude Valley and South brisbane)

    They purchased 18mths ago and settled this year.

    With the well known risks ahead in OTP apartments (especially brissy). What would you be doing ?
     
    jprops, 26th Sep, 2016
    #1
  2. Steven Ryan

    Steven Ryan Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,656
    Ick.

    Not enough info to make a call though.

    Some important questions:

    Have they drawn more equity than was needed for the OTPs?
    Are the OTPs stand-alone or are they crossed with the Sydney properties or each other?
    Can they service additional borrowings while holding the apts - enough to reach their investment goals?
    Do they mind bleeding cash for a while if rents are soft/fall?
    If they were to sell, would they break even, make a loss or a profit?
     
    Steven Ryan, 26th Sep, 2016
    #2
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