QLD Unsure what to do with unit in Brisbane

Property is a longterm investment so holding power is important.
If you sell now, you are crysalising your loss, which you will never ever get back.
And what are you going to do with that money anyway?
If you hang on a bit, and do more research, implement some strategic measures, you might be ahead of your neighbouring investors.
Sorry not privy to that suburb so cant offer much help.

 

I don't get why you bought in corinda at that price? Why not an older unit in a blue chip suburb?

 

He already knows he made a mistake. Let's not dwell on the past

 

Holding on to a losing product because you dont want to "crystalise your losses" as you put it is known as gamblers fallacy.
If you are not making any money and if it is likely to go down or just make no gains for a long period, far and away better to dump it and find something better.

 

Under the assumption that he can get financing again to rebuy. On that basis alone it might be preferable to hold on.

Very dangerous to play musical chairs right now. The seat might vanish.

 

Yep, rents have dropped significantly - I'd say between 10-20%. There are even developers offering $1000 David Jones vouchers, 4 weeks free rent etc. if you sign a lease. We sold our PPOR 80s 6-pack 2 bedder apartment in Kelvin Grove last September, just as the market started to turn. My OH had bought it for $378K in 2008, we spent $30K on renos and sold for $420K. Once you factor in agent selling commission and marketing costs, we pretty much broke even. If you factor in inflation, we definitely made a loss over the 8 year period. And there weren't even many new apartments going up in the area. At the end of the day we lived there so it was not a big deal. But goes to show that even over a longer period of time, buyer beware when it comes to Brisbane apartments!

 

And this same apartment 6 months later would probably struggle to sell for much over $400K.