I’m looking to offload one of my props in SE QLD. I’ve bought but never sold before. What are my indicative selling costs? Am I able to use an agent other than my current property manager? Is it better to sell the prop tenanted or empty?
Thanks.
jambv wrote:Is it better to sell the prop tenanted or empty? Thanks.In most cases vacant posession will give you more options, Home buyers are more likely to be put off if they have to settle on a tenanted property. Investors can go either way but it would depend on the quality of the tenants. I suppose it depends on who you are pitching the sale to.
Andrew
itsandrew
Go as far as you can see and you will see further.
You definately do NOT need to sell your property through your current property manager. You can use whatever agent you want.
I sold my first property south of Brisbane 2 years ago and negotiated a flat 2.5% commission, which is about average I think.
You may pay some discharge costs on your mortgage (if you have one) as well. I had 3 mortgages on my property and because 2 of them were less than 5 years old, I paid a few hundred dollars for discharge fees. The federal government recently overhauled discharge fees so I think if you are taking out a new mortgage, you are not liable for the discharge fees.
You may also be liable for capital gains tax if you made a capital gain. Say you made $100k gain, half of that ($50k) would be added to your taxable income for this financial year and taxed at income tax rates.
Hate to say this is incorrect:
The federal government recently overhauled discharge fees so I think if you are taking out a new mortgage, you are not liable for the discharge fees.
Most lenders still charge Settlement or discharge fees even post July 2011. The only thing that was repealled was deferred establishment or early repayment fees on variable rate loans.
Idea was to provide increased competition which i hate to say failed miserably and all that has happened is lenders have gone back to charging application fees upfront.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
The standard REIQ commission is 5% on the first $18K and then 2.5% on the balance of the sale price. There may also be a release mortgage fee and there will be adjustments for Council rates and water rates that are worked out by the solicitors. Your solicitor will possibly charge a title search fee and possibly a agent fee if an out of town solicitor is used.
Whether a property should be vacant at the time of selling will depend on your financial position but if it is vacant then I would suggest that the property be staged. If tenanted then you may have to negotiate with the tenant so that vacant possession may provided on settlement.
I would suggest that your property manager or that real estate agency may not be the best agency to sell your property. As with anything, you will need to do some research – see who is most active in the area and making the sales, particularly close to the listing price. Avoid selling by auction in Queensland as it is not as accepted as in the southern states and a lot of agents will push it to get the marketing costs covered and an exclusive agency for possible 90 days.
Brian
You must be logged in to reply to this topic. If you don't have an account, you can register here.
