With IP1, we realised that we bought at the wrong time of the cycle (learnt that from experience now). Since we have ridden the cycle down to the bottom and its now on the up cycle, we have the tendency to ride this one out for another few years to regain some of the capital loss.

If indeed we need to use those funds (and loans) for another investment sooner than later, at that time we’ll consider selling and offset that loss against the gain on another IP.

As for the fix the problem, one reason is that IP1 is under performing is its commercial office space and as such the other office spaces (same size in the building) command the rents to a degree. Now that the office space glut in Melbourne CBD is slowly eroding, we’re confident that prices will increase over the next 2 years.

I would say to an extent that we have been on the blissful ignorance side of the fence for the first few years. As you gain wisdom & experience, your evaluation of the problem changes perspective.

Perhaps as per the NRT webinars and this post have quit rightly pointed out, evaluating why you purchase the IP in the first place is key to the end game.

So many people go for the 'blissful ignorance' option!

Cheers

D