My husband and I bought a new house in January expecting to be able to sell our previous house quickly, unfortunately it hasn’t sold.
we were told that it was best to sell it because we have too much equity, but because we can’t is there anything we can do to stop losing money and having to pay an unsustainable $5,000 a month mortgage??
Because we know nothing about financial stuff we have no idea if we should hang out for someone to buy the old house or to rent it now and sell it in 6 months hoping for the market to improve. the agent tells us that we shoudl have no problem getting a tenant.
we bought it for $185,000 in 1998 and lived in it until this year. It is worth about $450,000 now (if someone would buy it, there’s nothing wrong with it). we only owe $140,000 on it. We could rent it for $300-$350 wk.
Why not rent it out and have it on the market for sale at the same time?
Lease option?
Wrap?
Regards Bear
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DONT MISS OUT!!!!!Hi cromie2,
Welcome to the forum.In the interim, there is nothing wrong with renting it out and then trying to sell it. It may give you some time to re-assess whether it is the right thing to sell without burdening the mortgage without assistance from your tenants. Unless the price is unrealistically high, then again, if you don’t need to sell, hold onto it.
Are you comfortable (both financially and psychologically) with having the two mortgages, with one being rented out. The reason I ask, is that some people are just not comfortable with going down that path. Although I suspect the fact that you are here on this site, would mean you are happy to countenance all suggestions.
You can utilise the excess between your rent and payments in either paying down your new PPOR’s debt or can assist you in servicing another IP if you so choose/have the debt capacity for.
James
I would rent it out, especially if you could get a tennant on a month to month lease.
You may consider changing agents for selling your house.
Remember that you house is only worth what someone is willing to pay for it.J
agreed, rent but tell tenants it is on market
some people like to buy a property with a tenant in it.
if not lower yuor price after all you did do well maybe it is now overpriced? in the wrong area? not being marketed right? etcRefinance?
” a blind man may see what a sighted man may not”
If that house was your PPOR and
now you place it in the rental market
check first if you sell it 1-2 years down the track if you are liable for CGTIn my view – There is no such thing as cant sell.
If there are no buyers then you are asking a price that buyers are not prepared to buy at.
There is an article from jenman that talks about vendors wanting too much. Do you really reckon you will get more in 6-12 months.
I dont know about that.
There are a few things you need to consider.
1. Any capital gains tax implications if i rent out PPOR.
2. Will i get a better price now or in 6-12 months time
3. Does the interest commitments now cost me more than the increased price I may get in the future.Personally I would reduce my price and sell it. I dont think the market for selling will be better in 6-12 months time. I am in Melb, so i dont know really about other States but I imagine they would be similar.
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