I am planning to sell my house and buy another one in the same suburb. Basically I am looking for a big block with old house. I feel this will be a better investment in the long run. I have the house valued by 3 different agents in the last 7 months. The different between the first and third is 170K!!! I personally think the first one was too low anyway but I am happy to sell at the price the third agent recond she can sell. The question is should I sell my house before I find another one since I will be able to make unconditional offer hence better buying power. Also I don’t have to sell my house in a hurry when I find the one that I like. Provided it doesn’t go up much in the next 6 – 12 months I’ll be doing alright. Is it wise to do it this way in this current market condition? By the way I live in Perth and I have no mortgage on my house. I am looking for a property with similar value.
Suggestion please. Thanks.I take it your selling your PPOR (principle Place of Residence) and looking to buy another PPOR ?
My thoughts only- look at the costs of selling and purchasing etc.. how much is it costing?
You live in Perth and owe ‘zilch’ on the house? Are you looking at investing ? Or just moving into a better PPOR? or looking to sell the new PPOR years down the track? and then ?
Sorry, lots of Q’s- but it will help everyone here assist you..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorWhy don’t you consider keeping your existing property as an investment, and buying the other one also? Failing that, you might want to talk to a broker about “bridging finance”. This is made for exactly what you are talking about.
Dan.
Looking for positively geared property? Check out http://www.positivelygeared.com.au
I am looking for a house with similar price. Yes it is my principal place of residence. The question is whether it is a better strategy to put my house on the market while looking for a property and asking for a top end of the price.
If we get a top price then we sell it.
If we sell our house before we find another one then we hold on to the cash and can offer a future seller a cash offer and have room to negotitate. Another option is to have a huge bridging loan when we find another property.
I am guessing that my area is not going up much this year since it already have big increase.
Keeping this house as an investment property is out of question because the loan will be too large (close to 1 mil). Also I won’t be able to gear it. This is going to the biggest single financial transaction I am going to make by far.zen,
Congrats on owning a debt-free $1 million house!
I think it’s a huge mistake to make a commitment to a new house before you sell your old house. This is how many people become “distressed”. If the old house sale falls through, you are under a great deal of pressure with the new house commitment.
It sounds as if you are in a great situatoin now, and not under any pressure. It may be a good time to sell- the perth market is still doing well, and top-end properties are great in most markets for value-maintenance. If I were in your situation, I would sell and then play with the money for a while (the king was in his counting house counting out his money…) and then think about the many options you’ll have.
kay henry
You could consider selling your current home and negotiating with the new owner to rent it for the short term while you search for your new dream home.
Yes, I think I will sell the house first while the market is still quite good. I am not sure if I can get close to 1 mil but low to mid 900k is good enough for me.
I will rent somewhere since I don’t want to pay $800-$900 a week rent that I will think it will cost me if I rent back from the buyer.
Thanks
Be careful about the top price the agent gave you , is it realistic or is it just to get you listing and then you’ll be talked down over time when it doesn’t sell for the price quoted.
Originally posted by zen:I will rent somewhere since I don’t want to pay $800-$900 a week rent that I will think it will cost me if I rent back from the buyer.
Is this the going rental rate for homes in your area and of the callibre of home in which you live??? You may find that the new owner is grateful to have you (the former owner) as a temporary tenant whilst he/she decides what to do with it (i.e rent it back out or occupy) hence may be negotiable on the “short term” rental charge. Most people buying a home (for whatever reason) like the idea of renting back (even temporarily) to former owners because they feel that as “former” owners these temporary tenants will have greater respect for their newly aquired property.
Either way, there is no harm in asking (and it may be a lot cheaper than bridging finance).
Cheers,
Jo
I have been wondering too if the agent is just trying to get listing from me, but she has been selling properties around my area for top prices. She seems to have few overseas buyers on her book. Anyway I am quite firm with the selling price as I have mentioned to her and I am in no hurry to sell.
The going rental rate will be 800-900k. Few houses away is being rented for $1200/week but it’s nicer house. The house was sold early this year by the agent (her) to an overseas buyer for 1.2 mil which shocked people on my street.
I am cleaning the house. I didn’t realise how much I have collected over the year.I will rent from the buyer if it’s not too much.
By the way the price she quoted was 880k-950k with 920k being the market value. I personally don’t like selling my house with price range like that. I prefer to ask for a specific price like 950k.
Thanks again.
Before you select your agent for the sale of your property ask them how they came up with their values. It is very easy to pull a high figure out of the air to get a listing, ask to see the sale prices of similer properties in your area. This information they have access to, but a lot of agents are too lazy to do the work.Remember asking prices are not neccesary selling prices!
If you get an unconditional contract ask, for an extended settlement say 90/120 days to give you time to find another property.[email protected] Always have cashflow positive Tasmanian commercial properties
availableSounds like Su* Mo@#^*ff and you’re near Attadale…
Just be aware that all these “overseas buyers” usually don’t have approval to buy established real estate under FIRB guidelines, unless they have Australian residency.
You may wish to clarify this with the agent before you sign a listing..KP
Yes, I will check with the agent how she valued our property.
KP, do I know you?
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