No show at home inspection - Even with price reduction

Discussion in 'Investment Strategy' started by Alex P Keaton, 10th Feb, 2018.

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  1. Alex P Keaton

    Alex P Keaton Well-Known Member

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    Again no one turned up. I won't reduce more than twice and just give it away.

    I've decided to take it off the market and rent it out again. Perhaps spring time in 2019 I'll look to sell again.

    Hopefully I'll be able to hang on financially until then. I've got $14k right now in savings and will get back $7000 in my tax return.

    I'll get in contact with my accountant and organise a withholding variation just to make cashflow better and less stressful.

    Fingers crossed I'll be ok and I can last till August of next year. If I have to mum can lend me some money to see me through and then when I sell it I can pay her back.

    I'll think positively it'll be ok. It will be a stressful time...I'll just hang in there, and things will look brighter in 2019
     
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    From recollection this unit is 48sqm one bedroom apartment in an older complex?

    Be aware that it's got to be one of the hardest asset types to see good CG in. Older complexes are not as appealing and assets smaller than 50sqm can be hard to lend against so your buyer pool is decreased.

    Looking at rent those things are not so much an issue so if rents go up this year then you might be feeling more comfortable but don't price it so high that you can't get a tenant in and have it sit empty.

    Does the apartment need a fresh coat of paint or anything you can DIY before advertising for a new tenant?
     
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  3. Alex P Keaton

    Alex P Keaton Well-Known Member

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    Yeah good points!

    Similar units are asking between $220 - $250 PW I think I'll advertise at the lower end and ensure I secure someone. It'll be a step up as I was renting it for $190pw previously.

    Nah I won't be spending money on that sort of stuff. Who knows what future expenses will come up. I need to preserve my cash.
     
  4. Alex P Keaton

    Alex P Keaton Well-Known Member

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    My last purchase was a good one. (Apart from buying at not the best time). I bought it new in 2014. A 3 x 2 villa which should see some nice growth when we eventually get some lol.

    The reason I could afford the 3x2 new villa was because I was living with my parents at the time of purchase.

    For my next IP I've been tossing up whether or not to buy a 60's style unit in a few years time or spend a bit more and buy a 1970's villa with small courtyard. They have better CG. I'd just have to be able to afford servicing and have the ability to borrow.


    Another option I do have is when I go to buy the villa I could look to sell my ppor unit too to help with the cost of buying it. Then I'd look to rent something for myself to live in.
     
  5. Alex P Keaton

    Alex P Keaton Well-Known Member

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    The idea just came to me. I'm due for my long service leave in March. I won't use any of it in the next 2 years. It gives me peace of mind to know if my savings are running low that I can cash in my $12,000 (net) in long service leave and keep myself going! So it's looking positive.

    I'll be able to hold out for a couple of more years ok I'm thinking. I'll sell at a better time when prices have started recovering and it's a more balanced market. Hopefully spring time 2019.
     
  6. Alex P Keaton

    Alex P Keaton Well-Known Member

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    And then when I've sold I could always buy 1 months purchased leave!
     
  7. DaveM

    DaveM Well-Known Member

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    At a premium since you will pax tax on the cash out
     
  8. Alex P Keaton

    Alex P Keaton Well-Known Member

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    Yeah I know.

    At this stage I'm still thinking about it. I might not do it. It does give me peace of mind to know I have cash up my sleeve. Buys me more time.

    I'll see how I go. If I need it to stay afloat then I'll do it.
     
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  9. Alex P Keaton

    Alex P Keaton Well-Known Member

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    I created a long service leave topic in the living room.

    I think I'll have a better nights sleep tonight. Won't worry as much.
     
  10. Barny

    Barny Well-Known Member

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    Just a thought mate, what will you do if prices don’t move in a year or 2 or go down further?
     
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  11. Alex P Keaton

    Alex P Keaton Well-Known Member

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    Well I don't believe that'll happen.

    If it did happen at least I knew I gave it a chance. Bad time to sell in Perth right now. Things can only improve I feel and that's what I'm hearing too.

    Anyway I'm focusing on what I'm wanting. Not putting my attention on that of what I'm not wanting to happen. Keeping a positive mindset
     
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  12. Barny

    Barny Well-Known Member

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    Positive mind set is great. Just have a backup plan just in case it doesn’t go the way you plan.
     
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  13. Alex P Keaton

    Alex P Keaton Well-Known Member

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    I'm thinking rents will rise soon too as the vacancy rate is lowering so it'll help me to hold.

    I guess I don't really have a back up plan. I can't think of one. Only thing I can do is wait some more and hopefully Perth recovers soon both in the rental and sales market. Cashing out my LSL and a loan from the bank of my parents (as a last resort) is my back up plan. Oh and cutting back on discretionary spending.
     
  14. Alex P Keaton

    Alex P Keaton Well-Known Member

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    In my dream last night I was catching a bus in my old neighbourhood where I grew up as an adolescent and young adult.

    I was on the bus and noticed that the bus was taking me in the wrong direction to where I wanted to go. Symbolic. Wish I could remember more of the dream.
     
  15. Ed Barton

    Ed Barton Well-Known Member

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    Same time next year, Alan?
     
  16. Noobieboy

    Noobieboy Well-Known Member

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    Mean mean machine :D
     
  17. Alex P Keaton

    Alex P Keaton Well-Known Member

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    Maybe its best to try again in 6 months time like I had originally planned, rather than wait 1-2 years which is going to put me under stress, stress that I dont want. Its going to be hard to take it though if i come away with anything less than $40,000.

    I'll sign the tenant up for 6 months
     
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  18. Barny

    Barny Well-Known Member

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    Mate you're like a yoyo. Speaking of yoyo's, why did the yoyo cross the road? Because it was walking the dog.
     
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  19. Gockie

    Gockie Life is good ☺️ Premium Member

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    I think Alex uses the forum to talk to herself! Doesn't matter what forumites say, because she'll end up doing whatever her mind decides. That's all ok, nothing wrong with it. :) We just end up on her ride, up and down. ...
     
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  20. Alex P Keaton

    Alex P Keaton Well-Known Member

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    lol Yes its true, I change my mind a lot. :D:p I observe it. I used to be hard on myself in the past about this and now I have come to love and accept that about myself, that it is ok. Some other things I have improved on, but some things I find its ok to be that way because thats just me and theres nothing wrong with that. :) Its all good. Anyhow i'll play it by ear, see what the market is doing in 6 months time and how my stress is going and go from there :)