Comments on: Should you sell?

By: Helen

Helen — Thu, 03 Jul 2008 21:52:26 +0000

Oh – I’d also like to add that we purchased the property 3 years ago – and have sold for $90,000 more than what we paid for it. Thanks.

By: Helen

Helen — Thu, 03 Jul 2008 21:44:14 +0000

Interested in people’s opinions as we own a modest house in UH and felt that if we didn’t sell soon we would be stuck here for 4-5 years which we didn’t want. We have managed to sell for QV which we are pleased about. We plan to bank the money, earn interest,rent and purchase a larger – “do-up” in a nicer area when/if the prices fall further, in 6 to 12 months time. We hope this works out for us.

By: Joe

Joe — Sat, 21 Jun 2008 06:03:56 +0000

It’s very simple in my view.

We have just had a six year bull market in property and the market has just turned over. Risks are now to the downside over the next three to five years and if you are holding an overvalued property, you should sell it.

With interest rates at 10%, if you are not earning a pre-tax cash flow return of at least 7% you should sell. So I would suggest you add up the annual rent you’re receiving, deduct all costs, and then divide the result by 7%. So for a house generating $300 p/w in rent with annual expenses of $2,500, the house is worth about $180,000.

If the price is significantly higher than this (it probably is) I would sell as fast as possible.

By: Hamish

Hamish — Tue, 29 Apr 2008 23:43:13 +0000

If you can hold on to it, you should not be selling right now. It all comes down to how long you can hold on, I guess. My personal stab in the dark, if you can not hold on to the property for more than 2-5 years, then sell now at any price.

By: Rick

Rick — Thu, 24 Apr 2008 06:11:35 +0000

While some are jumping ship under finacial pressure, I think that you will find that most investors are purging their under performing properties at the moment to free up capital to acquire better property when the shit hits the fan for the over capitalized investors.

You can guarantee they will be able to offload these properties for a good return quite easy even now (as they have probably held them for decade + so they owe them nothing) – most will sell to the new/inexperienced investor who believes they can grab a good deal right now from other bailing investors (buyer beware comes to mind).

The smart investor is just rearranging their affairs to spring board to the next level when the time is right.