Investors found a beautiful apartment in a seaside town up north, and the advert said:
“Buy off the plans and save”.
So they did as there were only two of the twenty units left.
Unbeknown to the investors, the developers had six unsold units, and when the units were all completed, they dumped their six units on the market at way below what our investors had paid.
This drastically dropped the value of their unit.
So do they sit and ride the market out, or sell, make a loss, and move on?
Given that the rent wasn’t covering the mortgage, they chose the latter and four years on, the value has not increased.
Was this a wise choice?