Dear All,
Three years ago we purchased a property (the house of our dreams-acre, extremely old Victorian,s.pool, etc! !)for $550,000 approx in the outer growth suburbs of Melbourne. Prior to this an agent (not ours) did something now illegal at the auction of our previous house so we were forced to sell cheaply and ended up with a significant for us mortgage of $400,000 (6.44% fixed) for our current home but are still swimming. The agents believe our house is worth somewhere between $750K and 950K but buyers in this section of the market are not coming real fast Hence given the current market should we attempt to
a) just attempt to hang in there (in three years time our situation will be OK) or
b)purchase investment properties that are CF positive to hopefully help our situation but of course add to our debt and potential risk or
c)sell -take what we can get and run and then buy a number of smaller properties using one as a residence or rent with all houses being investment property.
Any comments appreciated.
Daviddthat is a huge spread. 750-950k
I would have thought that is ridiculous. I mean that is outrageious in my opinion. Why can’t they get it in a ball park that is acceptable.
I would get an agent that knows what they are doing.
Byronent
Adelaide SAThanks B.and to answer your assumed question:
Well we’ve had plenty of agents from different companies (3 !!)each bring their own squad and each group having highly different opinions since the house is unique because of its age (100+) and nothing similar to compare to!Davidd
I would not compromise quality properties for crappy ve+ properties that gives you a few hundred a month.
Can you explain why you were forced to sell cheaply? And did you take any action against the agent that did this to you?
Is there any reason to sell, other than to reduce your mortgage which you appear to be managing? From what you wrote, I don’t like the idea of selling too much. It is your dream property and has grown a fair bit while you have been there = perfect. To sell now, may mean accepting a reduced price.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Terry, how can he take action against an agent that was not a party to the transaction?
I am also wondering how an agent who was not yours could force you to sell cheaply?
It is all your choice. You did not have to sell unless you set a low reserve and the auction reached that price.
_____________________________________________
The poster formally known as The Mortgage Adviser
When I grow up, I want to be a Storm Trooper!
Well to answer the questions! In brief,
We purchased our current home before selling the previous one because I believed it was a bargain and still do! At the auction of the previous house we knew we had at most two definite bidders but nonone else. On auction day when bidding had got started and whilst our agent was bludging unbeknown to us (we were in the house -a big mistake)another agent with helpers literally told these two separate bidders they had better properties elsewhere, “don’t buy this house” and off they went with them! The auction went dead and passed in! (I am told you cannot do this NOW in Victoria under the Agents RESI code but at the time there was nothing really we could do.) We did not know about this until a friend of a friend of ours informed us of what happened! At this time (4 years ago) our agent seemingly could not do much after the event and certainly DIDN’T.
The bank didn’t like this two mortgage situation much, nor did an adviser and getting it rented quickly or slowly was not an option so we ended up to my dismay being a forced seller since noone else for the next three months seemed interested.Six months after this, buyers hit the market and our old house’s price took off major league but we were gone!
Happy Days!
DaviddIf it was me, I’d be paying a registered valuer and have a proper valuation done on the property. This would then give you a ballpark to go on instead of relying on appraisals from RE agents. You can then make your decision from there whether you keep it or sell.
Financial Wellbeing Coach
W: http://www.pfsfinance.com.au
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E:[email protected]Development Finance Specialist
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