- HutchParticipant@hutchbykerkJoin Date: 2004Post Count: 1
I currently own a 3 bedroom apartment in the inner west of Sydney. ive owned it for 10 years and am thinking about putting it on the market. my wife an I are looking for the next step in our lives and want to buy a house. plan is to sell it now, then rent for min 6mths and wait for the right house to come along or more importantly the right price!… the plan is to sell now.. at the high or almost at the high and wait till prices drop …. also looking to have excess money after purchasing the house to invest once the market drops…
ive researched the markets for some time and the above is what I think is a smart plan for my wife any moving forward…. I know you cant predict the market but want to ensure im making an informed decision….
just wanted to see what others thought about this? any one else thinking the same or are in a similar position and are thinking something else.
any feedback would be great.
Email Meaussieguy2000Participant@aussieguy2000Join Date: 2010Post Count: 81
So just to clarify, are you looking at selling as you want to find a new direction, somewhere else to live, or are you just wanting to gamble, hoping that prices will drop and you will pick up the neighbours house at a later date for a smaller price?
If you are planning on retiring or a sea/tree change, then perhaps selling may be a good idea, it is a good time to sell, and I don’t see house prices going up much in the near future – but rental prices may, to catch up to the price surge. If it is the later you are hoping for, then I suggest you sell your house, take your small fortune to the casino and put it all on black… I like black more than red… as you are only gambling in doing so. The current market would be like a roulette wheel with a complete history board of reds – but that doesn’t guarantee a black spin and there is always zero – that out left field spin – that virtually no one predicted coming up, no one can predict what will happen. If you read posts for the last 10+ years across forums the nay-sayers have been “predicting” a bubble burst for the entire time (and even before these forums this was the case)…
What I believe is that you may see a small price correction at some point, maybe 1-5% (possibly up to 10% in some Sydney areas) of property values, this is normal, then – unless the government has a magic wand to make thousands of houses magically appear over night – it will probably simply be a long period of flat prices for the next 5-10 years with a small increase at or below CPI. Noting that if you sell and then buy again, this 1-5% will quickly be eaten up by selling prices and stamp duty, so your chance of coming out in front is slim.
That said, if the economy takes a dire downward spiral, that causes large unemployment figures and FORCES people to sell their homes on mass, then we will see a collapse in prices, but if prices drop slightly, and people aren’t forced to sell, then why would they? So the few that do sell for personal or lifestyle reasons will hardly push supply above demand, especially with a constant shortfall in available properties across the country – particularly Sydney. I for one am looking at selling in Sydney, but this is because the prices are great and I want to sell my home that is coming near to its end as my principle place of residence, so I can buy where I am currently living and renting – it doesn’t make sense to hold it.
In the end it is your own decision, but you should make it for the right reasons, and not simply to try and make a quick buck, as the future of the property market will probably shock us all, and most of us will have wrong predictions on what will actually happen. Be happy with a roof over your head and don’t gamble it away if that is where your intentions lie, as you could put yourself in a far worst situation that you are now or the situation you are hoping to achieve.
I am no expert by any means, and I am sure the experts can pick at what I have said, but what they can’t argue with is to do it for the right reasons and don’t do it to gamble and make a quick buck.
[email protected]Participant@spartantomJoin Date: 2015Post Count: 18
- This reply was modified 4 years, 9 months ago by aussieguy2000.
Agreed. I think you’ll find the majority of high rollers on this forum and in general buy and hold property.
The pay off from flipping a property can be huge but then you need to invest that cash somewhere else that will earn you more than you would have earned had you stayed in the current property. Plus you need to account for exit and re-entry costs.
Take a look at your reasons for selling and then you can determine the best course of action.
Have you considered keeping the unit, refinancing and purchasing another property? Talk to a mortgage broker about this, they will be able to provide specific guidance tailored to your situation.
- This reply was modified 4 years, 9 months ago by [email protected].