(Trying to determine whether or not it would be viable to market a house I need to sell towards investors, and at what price)
I'm thinking about selling one of my properties shortly. Thing is, if I do put it on the market I need a very quick sale, so I have to price it attractively... BUT, as it was financed at 100% (full purchase price), I need to gain from the sale at least the full mortgage amount plus selling costs. For hopefully obvious reasons I don't want to divulge here the minimum price I have to obtain for it. But I was hoping it might be possible for someone here to 'work backwards' from information I can give about rent potential, etc to come up with a price range where an investor would start to see it as a viable IP option....
Description (have no idea how important this is, but thought I should add it in here, just in case!):
3 good double bedrooms with cozy open-plan living areas, (or 2 good doubles, with either extra living area or large office - work from home potential), character 1930's bungalow, very sunny, heat pump, popular street/neighbourhood/schools, very large (9 metres I think) almost-new 2-car garage (potential to convert part to sleepout, and still leave sizeable garage space), 450 sqm excluding driveway. Condition = reasonable ( have done lots of stripping, painting & repairs, is tidy and attractive and presents well, but not 'modernized' as such.)
Rent potential: I have let it out as a furnished rental, at between $350 (when I was in a hurry to get tenants) to $395, with tenants renting from as short as 2 months to as long as one year. Because of popular location, has been very easy to get tenants. $360-$375 average p/w over 52 weeks furnished is a safe bet, with very good potential for higher.
As an unfurnished rental it's harder to gague price - anywhere from $330 - $360 at the moment maybe, without sleepout. With sleepout, am not sure, no experience.
Rates = $1760 per annum (but will be less at time of sale as I have reduced the section size to add land to my own property bordering it.)
I could sell the house with furnishings included, so house could be let from day one.
SO... based on these figures, and looking at current (or even lower upcoming) interest rates, is there any way to work out what the lowest sale price would have to be for an investor to see it as worth consideration?
All constructive comments/ideas welcome!!
I'm thinking about selling one of my properties shortly. Thing is, if I do put it on the market I need a very quick sale, so I have to price it attractively... BUT, as it was financed at 100% (full purchase price), I need to gain from the sale at least the full mortgage amount plus selling costs. For hopefully obvious reasons I don't want to divulge here the minimum price I have to obtain for it. But I was hoping it might be possible for someone here to 'work backwards' from information I can give about rent potential, etc to come up with a price range where an investor would start to see it as a viable IP option....
Description (have no idea how important this is, but thought I should add it in here, just in case!):
3 good double bedrooms with cozy open-plan living areas, (or 2 good doubles, with either extra living area or large office - work from home potential), character 1930's bungalow, very sunny, heat pump, popular street/neighbourhood/schools, very large (9 metres I think) almost-new 2-car garage (potential to convert part to sleepout, and still leave sizeable garage space), 450 sqm excluding driveway. Condition = reasonable ( have done lots of stripping, painting & repairs, is tidy and attractive and presents well, but not 'modernized' as such.)
Rent potential: I have let it out as a furnished rental, at between $350 (when I was in a hurry to get tenants) to $395, with tenants renting from as short as 2 months to as long as one year. Because of popular location, has been very easy to get tenants. $360-$375 average p/w over 52 weeks furnished is a safe bet, with very good potential for higher.
As an unfurnished rental it's harder to gague price - anywhere from $330 - $360 at the moment maybe, without sleepout. With sleepout, am not sure, no experience.
Rates = $1760 per annum (but will be less at time of sale as I have reduced the section size to add land to my own property bordering it.)
I could sell the house with furnishings included, so house could be let from day one.
SO... based on these figures, and looking at current (or even lower upcoming) interest rates, is there any way to work out what the lowest sale price would have to be for an investor to see it as worth consideration?
All constructive comments/ideas welcome!!
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