ROMA QLD IP - How to sell the IP

Discussion in 'The Buying & Selling Process' started by JJ1081, 15th May, 2016.

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  1. JJ1081

    JJ1081 Active Member

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    Hi All,

    I purchased the house and land package for $420k in Roma QLD in 2013. Construction started in early 2014 and half way through builder went into administration and finished the construction through QBCC in Jun 2015. This IP is currently rented out with $330pw but I want to sell this property as Roma has fallen with property prices and rents have fallen from $550 to $295 pw.
    Any idea how can I sell this house or any other strategy to make up the loss. I am not sure what could be the house price in this current market situation in Roma QLD.
     
  2. Marg4000

    Marg4000 Well-Known Member

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    Roma has been affected by the mining downturn.

    A quick look at realestate.com.au should give you an accurate idea of asking prices for similar houses. Look up sold prices to see what is actually being paid.
    Marg
     
  3. JJ1081

    JJ1081 Active Member

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    Thanks Marg,

    The problem with Roma is there are total 9 sells in Roma for this year. So you can imagine how slow the market is. That is why I want to know what can be done as alternative to sell the property in very slow (stall) property market.
     
  4. lucy

    lucy Member

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    We are in the same situation with Roma, it is such nuisance that property prices have gone down dramatically. We are most likely looking to sell early next year, just hoping the market rises a bit over spring once the new hospital is built in September. Time will tell I suppose...........
     
  5. JJ1081

    JJ1081 Active Member

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    I really want to know from experienced people from this forum to share any ideas to help with this Roma situation. I am still holding this IP and want to sell it without making huge losses. What could be alternatives to get out of this situation.
     
  6. wylie

    wylie Moderator Staff Member

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    Have prices fallen more than when you posted about this three years ago?

    I don't know how you can sell without making huge losses. What would the property sell for now?
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Offer a new Hyundai Getz with the deal.
     
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  8. Sackie

    Sackie Well-Known Member Premium Member

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    I don't see how you'd be able to sell it now without significant losses. This is the gamble people take when they buy into super high risk areas such as Roma. Hard to swallow I know but its the reality. I'm guessing its at least 150k negative equity .
     
    Last edited: 18th Apr, 2019
  9. kierank

    kierank Well-Known Member

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    @JJ1081, Roma has a population of around 6,800.

    IMHO, buying an investment property in Roma was always going to be a risky transaction.

    To help us understand your decision, can you share your investment strategy (including your exit strategy) that convinced you to buy this property?
     
    Last edited: 18th Apr, 2019
  10. TMNT

    TMNT Well-Known Member

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    Location:
    Melbourne
    Population 6800
    Houses for sale 507
    55 Houses sold in 2018
    2018 Median sale $220k
    Cheapest property on market $90k
    5yr change -33%

    Ouch
     
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  11. Blueskies

    Blueskies Well-Known Member

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    Quick look at the stats:

    Asking prices: Screenshot_2019-04-25-19-26-38-61.png

    Vacancy rates:
    Screenshot_2019-04-25-19-27-08-26.png

    Asking rents:
    Screenshot_2019-04-25-19-27-35-11.png

    Looks to me like things are pretty much rock bottom, price and rent falls have stabilised, and vacancy rates are back to reasonable levels.

    If you sell now you crystallise the capital loss, if you hold you run negative yields for probably the next decade or two or until the next mining boom. Neither are great options. I think you just need to run the two scenarios out into the future and see what makes the most financial sense. Take the emotion and your sunk cost out of the decision making too, in reality you've already incurred the loss, goal from here is to minimise further losses into the future.
     
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  12. kierank

    kierank Well-Known Member

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    From memory, the last boom was caused by the CSG expansion.

    I don’t think we will ever see another boom in Roma like that.

    I don’t think Roma will ever boom again.

    Roma doesn’t have much going for it except agriculture.
     
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  13. kierank

    kierank Well-Known Member

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    In 2011 census, the population was 6,906.

    In 2016 census, the population was 6,848.

    Not what I would call a booming town, even with the CSG expansion project.
     
  14. JJ1081

    JJ1081 Active Member

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    To be honest, I didn't have any exit strategy at the time of buying as my understanding was buy and hold is the best strategy. Can't blame others (like builder who went to Vol admin half way and developer to dishonour 3 Yr rental assurance etc.) for my mistakes.
     
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  15. TMNT

    TMNT Well-Known Member

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    dont feel too bad, an exit strategy is something most people dont think about,

    hell, I still dont have one, real estate generally is very stable and liquid (except mining areas)
     
  16. housechopper2

    housechopper2 Well-Known Member

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    As others have said, please post some more detail about the situation.

    You need tospeak to some real estate agents to determine what it will sell for and then an accountant to Determine ways you might minimise the losses - E.g. sell in which financial year, carrying forward losses etc etc
     
  17. JJ1081

    JJ1081 Active Member

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    Hi Housechopper2, please see my first post of the situation.
    Currently IP is rented for $315pw. In May 2016 when I posted this thread, there were no buyers in Roma as I talked to number of real estate agents. This year I can see some movements in the market. I still need to contact no of agents to see what could be the selling price but as mentioned before I have invested in high risk area of QLD.
    I will need to discuss with an accountant to see what can be done to minimise the loss.
     
  18. housechopper2

    housechopper2 Well-Known Member

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    With that return it doesn’t seem to be costing you anything to hold each year. Have you had good tenants and limited vacancy? If so, consider timing when you sell to suit you
     
  19. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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  20. lucy

    lucy Member

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    Looks like there is beginning to be a slight shift in the Roma property market. Limited rentals in regards to 4 bedrooms homes and a few houses appear to be going for auction.The hospital is due to be completed early 2020, so that may also assist.
     
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