I currently want to sell my house in Victoria and I am living in Sydney. I’ve only had the property for just over a year but I bought it with little to no knowledge of property investing and since then have seen the error of my ways. I know that other costs in the sale include sales commision, advertising costs, mortgage payout (I locked in the interest for 3 years) adjustment council rates, capital gains tax, and possibly some minor improvement costs. Is there any other costs I might have missed? I’m factoring about 5% of total sale price in costs? Is that a fair amount? I’ve had 3 real estate agents go through the property to evaluate and so far they’ve come up with around the same ball park figure. (180-195k) I told each agent that I was interested to sell soon and I also told each agent about the other agents evaluating too. Is that a good or a bad thing?
I’m sure there’s some people out there that have gone through this before… What steps did you take? There are some people I know trying to deter me from selling it but I’ve researched and like the idea of purchasing property that provides an income for me from day one! I’ve done the sums on how I could make it cashflow positive but it doesn’t work.
I’d rather start with a clean slate and take a loss now than hold onto it and pour money into it when I don’t have to.Cheers,
Globe.Are you sure you are doing the right thing? Selling a property will cost you as you know. This is money down the drain. then when you buy again, there is more stamp duty etc to pay.
I am concerned that a number of people are reading Steve’s books and then thinking they have done ‘it’ incorrectly. They sell their property in good locations and then buy inferior property just because it has a higher rental yield.
Think carefully before you rush into anything.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I don’t believe I have rushed into this decision to sell. I appreciate your view on this Terry but I think my mind is fairly well made up. It is an older style of property that has nothing other than rent to cover the costs it just isn’t making the grade. I’m not totally going off the success of Steve and Dave’s deals as the norm for everything that occurs but I believe that I can create a better situation for myself by starting fresh and adopting a different approach to what I had originally started with. (which was no idea!) If that means losing money than so be it. I’ll know next time that’s for sure!
Thank you for the feedback again Terryw.Globe.
Hi Globe,
Sorry to hear about your troubles.
If you have to sell, have you thought about selling it yourself. You may consider this to hard considering you are living in Sydney. If this interests you, have a read of Real Estate Without Agents, (I think thats the correct title) it’s by Terry Ryder.Also if your worried about whether the agents are under/over quoting the selling price then pay for a qualified valuer to give you an estimate or research the recent sales in the area to give you an idea if their telling the truth. Ask the agents for a CMA.
Guy.[smiling]
I’d rather start with a clean slate and take a loss now than hold onto it and pour money into it when I don’t have to.
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