Should I sell?

Discussion in 'Investment Strategy' started by Bran, 19th Sep, 2015.

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  1. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    maybe : ) but my response was generalist : )

    ta
    rolf
     
  2. Bran

    Bran Well-Known Member

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    Those watching Brisbane might be interested to know that the offer was for a 607m2 LMR block south side, 9km from CBD in an elevated position.

    Bank val 4 months ago was 540k. Bank val was 610k one month ago. Offer was 690k. New market value? Hope so, but was 14% above what I had perceived as its value.

    Anyway, I declined.
     
  3. Perthguy

    Perthguy Well-Known Member

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    Great move! You should always decline a verbal offer... especially in a rising market. It actually takes a lot of due diligence to sell a property. Currently doing DD for a property in Melbourne. It's a lot of work! :)
     
  4. weejimmy

    weejimmy Well-Known Member

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    Why not just add 50k onto it and let the person that made the offer make the decision for you.
    Or what ever price would make you sell without a second thought.
    When ever I have somthing I don't realy want to sell and some one asks me, I just give a rediculas price. If they pay it. Great, if not then your none the worse off.
     
  5. Bran

    Bran Well-Known Member

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    I figure I'd sell if he matched 3 years of 10% cumulative growth.

    So, I added 120k and said I'd sell for 810k. Funnily enough, he didn't call me back.

    And if I weren't pulling equity out all the time, then I'd leave it for a decade - then check what its worth.

    (My wife tells me it will NEVER be worth a million. She seems to forget its gone up nearly 50% in 5 years, and thinks I'm being greedy. But I stopped listening when she told me she'd sell for 510.)
     
  6. JDP1

    JDP1 Well-Known Member

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    then it must be a developer on this forum.:D
     
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  7. Bran

    Bran Well-Known Member

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    Anyone going to own up? Because, my wife DESPERATELY wants me to sell it. There is only so long I can listen to her bang on about it.




    Edit: 'Desperately' is very much an exaggeration. She is actually quite ambivalent, "as long as I can cover the repayments".
     
  8. Azazel

    Azazel Well-Known Member

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    Hehe, nice one.

    50% in 5 years is pretty good. It must be covering costs then.
     
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  9. Bran

    Bran Well-Known Member

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    Argh.

    My wife has now recruited all her family and friends to tell me "the boom is now" (or it's over), and that I should sell.

    It's actually really difficult. I don't have a crystal ball any better than anyone else :/
     
  10. wylie

    wylie Moderator Staff Member

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    Does your wife understand that you've made money from this house, or does she just see the debt and worry about that part of the equation? Why is she pushing for you to sell (especially as it seems from your comments that you don't have a huge amount of equity in this house, so selling wouldn't clear much debt I believe)?

    When we were married, and bought a house together, I sold my first little house. Hubby kept his house and we rented it out. My father-in-law put down on A4 how we would be much better off selling the second house and clear some debt. That would have given us one house with little debt... one house to grow with the market.

    We thanked him and continued on. Hubby learned from me and my family. His family just didn't "get it" and just saw our debt. I'm so glad we didn't listen to his father.
     
  11. Bran

    Bran Well-Known Member

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    No I don't think so - she just sees the debt and worry. This comes from a decade of being tight and in debt, which we still are! She comes from a 'buy one house and pay it off' stock - but in saying that, neither of either of our families have even managed that.
    Selling would make no difference to our daily lives, no.
    If I could reconcile that the offer was market value, I'd sleep easy. But knowing it was a strong offer made it harder to decline. But hey, it's not money I've lost.
     
  12. wylie

    wylie Moderator Staff Member

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    Sounds like hubby's family. That house will one day out a lot more money into your pockets than it will now.
     
  13. wylie

    wylie Moderator Staff Member

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    Double posted
     
  14. HUGH72

    HUGH72 Well-Known Member

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    It sounds like you might have a lot of non deductible debt which changes things slightly, unless its a dud I'm strongly of the never sell or sell at retirement point of view. You have mentioned that you are highly leveraged but this is a good time to have plenty of exposure to the Brisbane market and its only a problem if you find that cash flow is tight.
    Early on we were also in the pay one off mode and this didn't change until we had paid off 2 places, in hindsight this slowed down further aquisitions and exposure to growth.
     
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  15. Bran

    Bran Well-Known Member

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    Hi Hugh. Thanks for your reply. I do have a lot of non-deductible debt, most of it my PPOR which I bought 105% borrowed (was supposed to be an IP!!). It's not a massive concern at 4.3%, but I'm working at building the offset. I've managed to reduce my total LVR from 93% to 87% for a 1.8m portfolio in 6 months... so making some progress. A little bit of a boom would help with my wife's stress. I'm not too worried, I can always work more.
     
  16. Azazel

    Azazel Well-Known Member

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  17. Bran

    Bran Well-Known Member

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    Was just rolling through sold listings, and came across a similarly sized LMR with DA - sold for $675.

    I would argue my block is better, with views and an extra apartment possible- so I'm glad I didn't take the offer - seems its closer to comparables values than I thought.
     
  18. fols

    fols Well-Known Member

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    Time to unlock some equity then @Bran !
     
  19. Bran

    Bran Well-Known Member

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    Ha ha. Already on it ;)
     
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  20. Debz

    Debz Active Member

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    I was in the same dilemna as OP, and you know what, end of day family comes first and money can always be made. Don't strain your family relationships over this property. I am in the process of selling one of my most profitable IPs in Melbourne right now which i have only owned for 2 years but have seen 20% growth in that time. I want to reduce my LVR and knock some non-deductible debt on its head because i feel jittery about the economy plus we have also gone from 2 incomes to 1 temporarily, but not sure when we will be back up to 2 incomes. I also have another IP that has been a lemon for 3 years which i am keeping due to better yield, plus the loan size is smaller than the one i am selling, and i have another one in QLD that has seen 5-10% growth in 12 months. So i am taking one step back and decided to try and cash in due to my above mentioned reasons and minimise a bit of risk in my personal circumstance and i don't feel bad about it. There are always other investment opportunities out there, but only one family.
     
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