Like most investors with property in another state, I constantly get barraged with sincere and imploring letters from Real estate agents who have got my name and address from the Title register and have "genuine buyers for a property like mine at XYZ street and am I interested in selling or getting a free market appraisal..."
Occasionally these letters are handy in that they'll list nearby properties which the agent has sold and what they got for them but I usually just file them away for future reference.
However, one letter caught my eye the other day as it was from the husband of an old friend of mine. The particular property in question is one that I've contemplated selling because it is a fairly average one bedder with not a lot to recommend it (apart from being in a good suburb and the fact the bank now thinks it is worth 20K more than I spent on it and its returning 10%).
All of which led me to start thinking "when is the right time to sell?"
I'd be interested in people's views.
This property is tenanted with every likelihood of the tenant renewing (altho the tenant might even buy it himself if I put the offer to him - his father's in real estate in a country town).
I don't need the money I'd clear from the sale and to be honest I haven't found another property which is a good enough deal to put the $ into. I suppose I could wrap it - but I have to admit my personal view is that wrapping is a lot of effort for not much return on a one-off basis.
My concern with this unit is that in the long term it will need a makeover but will probably not realise too much more rent because of its size and layout. I don't like to spend money on a refurb unless I get a total return on the cost of 3 times what I spend.
On the other hand, I wonder whether people with 1 bedders in Sydney 10 years ago thought they'd ever be worth what they are now?
I look forward to some general comments on when and why others have done some "portfolio readjustment"
Cheers
N
Occasionally these letters are handy in that they'll list nearby properties which the agent has sold and what they got for them but I usually just file them away for future reference.
However, one letter caught my eye the other day as it was from the husband of an old friend of mine. The particular property in question is one that I've contemplated selling because it is a fairly average one bedder with not a lot to recommend it (apart from being in a good suburb and the fact the bank now thinks it is worth 20K more than I spent on it and its returning 10%).
All of which led me to start thinking "when is the right time to sell?"
I'd be interested in people's views.
This property is tenanted with every likelihood of the tenant renewing (altho the tenant might even buy it himself if I put the offer to him - his father's in real estate in a country town).
I don't need the money I'd clear from the sale and to be honest I haven't found another property which is a good enough deal to put the $ into. I suppose I could wrap it - but I have to admit my personal view is that wrapping is a lot of effort for not much return on a one-off basis.
My concern with this unit is that in the long term it will need a makeover but will probably not realise too much more rent because of its size and layout. I don't like to spend money on a refurb unless I get a total return on the cost of 3 times what I spend.
On the other hand, I wonder whether people with 1 bedders in Sydney 10 years ago thought they'd ever be worth what they are now?
I look forward to some general comments on when and why others have done some "portfolio readjustment"
Cheers
N