Selling Property

[HappyHeart]

Just having a bit of a think about our options and what we could do if we sold our home. We have built up a reasonable amount of equity in the 4 years since we purchased but after talking to our bank it sounds like that amount dwindles when you take into account sellers fees and funds required to buy a new home...why is finance so bloody complicated:arghh:. My head is spinning with numbers.......Any words of advice?

[HappyHeart]

Interesting how much they will lend you though...could buy my dream home based on the numbers....couldn't afford to do anything else though!!

[HappyHeart]

Bump!

[Que Sera Sera]

I've thought about it. We were very very economical when building ours. We could now afford something much grander in a far better location but I'm full of the what ifs? We really ddon't want to struggle. Investment properties to take advantage of negative gearing? My head spins with it all, again what if this what if that. I think we'll stay put for the minute but I know where you are coming from.

[Parley]

What is your question ?

[Rupert]

Bump!

 

I don't know what you are looking for advice on?

[Guest The Pom Queen]

Have a chat with Andrew Williams he may be able to think of other options/lenders

[HappyHeart]

Just general advice on selling in Au really. Fees to be aware of etc....good times to sell...things to be aware of etc. I know Im vague. I cant help it. I have so many ideas. The woman at the bank loved me I could tell. Think I gave her a headache with my vague questions:)

[Guest Guest66881]

Look to local housing trends, sales wise i mean if you can catch the latest trend in house sales in your area then you can make more from the frenzy of buyers looking, we did we made nearly $110000 on our old house, luck and timing really help.

[HappyHeart]

There are not many available in my area and prices have risen sharply so I know its a good time to sell but am not sure its the right time for us as a family....going to get another valuation because if it does sell for what we have been led to believe we can expect we'd be a bit silly to hang around for the sake of it. Want to move south. House prices much cheaper. Reduce the mortgage that way and also downsize one bedroom.

[Guest Guest66881]

Then sell it mate, put it up and fulfill your desires/dreams.

[Paul1Perth]

Just general advice on selling in Au really. Fees to be aware of etc....good times to sell...things to be aware of etc. I know Im vague. I cant help it. I have so many ideas. The woman at the bank loved me I could tell. Think I gave her a headache with my vague questions:)

 

The woman in the bank loved you because she can smell the money. If you like your house and the area I would be staying put and spend the money on improvements. If you don't like the area and fancy something different then go for a change.

 

I would say don't overstretch yourself though. We have friends who emigrated cashed up, bought their house for cash, investment properties galore, he was going to retire at 50. When the GFC hit he lost his job, they had lots going out and nothing coming in. They tried to sell their investment properties just when everyone else was doing the same.

 

They nearly lost everything, including their own home. They have 3 kids too. Managed to scrape through but now have a massive mortgage on the house they bought for cash.

[HappyHeart]

I was being sarky Paul...she loved me because I was asking vague pain in the arse difficult questions!! She wasn't pushy in the slightest!

 

We wouldn't overstretch ourselves...we borrowed well under what was offered and bought at a bargain price (what we were prepared to pay) We are not financially ambitious people, the aim is to lower the outgoings to enable less years /hours of paid work and more living.

[HappyHeart]

I love our house but we don;t plan to stay in the area, we want to move South but at the moment don't feel its fair to uproot son from primary school he is enjoying and doing well at...he won't go to any of the local High Schools though so we are looking at a move maybe 2017....it's just good to keep an open mind. Maybe we will use some of the equity to do some improvements..it's a thought.

[flag of convenience]

Remember money lenders are in the business of making money for their employer and themselves. Not difficult to borrow money if in work, paying it back it where it can obviously hurt. Especially when interest rates go northwards which at some time they will do without a lot of pre warning.

 

It was noted today house prices in WA have fallen 1.2% for the last month. That amounts to the biggest fall in some years. Of course it is a two edged sword. While the price of your house declines so does the place hopefully in the area you want to purchase.

The boom should be well and truly over by then so prices may well go lower with less demand and lower population increase. Housing being judged by most measures to be considerably over priced Once all the costs are accounted for the gain in housing in normal times over a shorter duration is hardly substantial. Far better in shares.

 

Having only recently had different renovation jobs done I can vouch for the expense involved. I got quotes obviously but still ended up more for one reason or another and quite honestly the rip off rates charged though improved the house also over capitalised in the sense that value did not correspond to the cost involved. But not selling so off little concern. Something to consider though.

 

I'd keep an eye on price movement on the area your interested in and make your move when the time is right for you.

[Marisawright]

Just having a bit of a think about our options and what we could do if we sold our home. We have built up a reasonable amount of equity in the 4 years since we purchased but after talking to our bank it sounds like that amount dwindles when you take into account sellers fees and funds required to buy a new home...why is finance so bloody complicated:arghh:. My head is spinning with numbers.......Any words of advice?

 

Why do you want to sell?

 

It's not that complicated, really.

 

1. Ask your bank what the exit fees are on your mortgage (or transfer fee if you're allowed to transfer the mortgage to another property). Get it in writing so they can't say they made a mistake later!

 

2. Talk to some real estate agents and ask (a) what your house is worth and (b) what their commission would be. Whatever they say the house is worth, knock at least $10,000 off - they always overstate the value to get your business.

 

3. How much would your new house cost? You'll pay stamp duty in most states. Google and you'll find plenty of calculators to work out how much it will cost in your state.

 

4. Talk to a conveyancer in your area and find out what their fees are (conveyancers are much cheaper than solicitors and usually charge a set fee and they usually do just as good a job).

 

Now add them up - you'll have a conveyancing fee and agent's fees on your sale, then a conveyancing fee and stamp duty on your purchase. You may also have exit fees and establishment fees on your mortgage(s). All up it's easy to end up with $20,000 or $30,000 worth of fees and charges.