澳洲Australia property Hold and pray or walk away? | Sydney


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


I have a friend that has a property... holding costs are negative to the tune of 5% of the property value. LVR is now 100%. Assume CPI running at 3%, so debt deflation means the true holding cost is 2%, however the cash holding cost is still obviously 5%! Area has dropped 20% in value over the last couple of years, though long term growth rate is the typical 12%. It's in WA which is setting up for a boom, tho some comentators argue it's 5 years from boom time again.

Shoild they hold and keep throwing cash in, or walk away?  

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Ausprop said: ↑
I have a friend that has a property... holding costs are negative to the tune of 5% of the property value. LVR is now 100%. Assume CPI running at 3%, so debt deflation means the true holding cost is 2%, however the cash holding cost is still obviously 5%! Area has dropped 20% in value over the last couple of years, though long term growth rate is the typical 12%. It's in WA which is setting up for a boom, tho some comentators argue it's 5 years from boom time again.

Shoild they hold and keep throwing cash in, or walk away?Click to expand...
i with your commentators - i see stagnation for a few years (more than 3) yet...

i'd sell and utilise the extra borrowing capacity on other, more lucrative projects.

and my money is where my mouth is - i'm selling up.

hope is not an investment strategy.

what if WA does "boom" and this area doesn't follow suit? all that outlay and hoping for nothing.  

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Aaron Sice said: ↑
.

hope is not an investment strategy.Click to expand...
Hope be not a strategy for anything ............?

ta

rolf  

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Ausprop said: ↑
I have a friend that has a property... holding costs are negative to the tune of 5% of the property value. LVR is now 100%. Assume CPI running at 3%, so debt deflation means the true holding cost is 2%, however the cash holding cost is still obviously 5%! Area has dropped 20% in value over the last couple of years, though long term growth rate is the typical 12%. It's in WA which is setting up for a boom, tho some comentators argue it's 5 years from boom time again.

Shoild they hold and keep throwing cash in, or walk away?Click to expand...
if it was me i would hold it, i think in 2-3 years she will be far better off holding than selling in wa market  

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Hi Ausprop

There may be a third alternative where they could sell the property for a fixed capital gain and positive cash flow over the next few years, i.e. sell it with vendor finance. We call this our negative2positive procedure.

A search through the forum for vendor finance brings up a large amount of information on the subject.

Cheers, Paul  

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Lofty said: ↑
Hi Ausprop

There may be a third alternative where they could sell the property for a fixed capital gain and positive cash flow over the next few years, i.e. sell it with vendor finance. We call this our negative2positive procedure.

A search through the forum for vendor finance brings up a large amount of information on the subject.

Cheers, PaulClick to expand...
you raise a good point. I keep forgetting about this.  

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