Hi All, Just seeking an opinion on the Adelaide market. My husband & I put our home on the market last October at $530k (previous bank valuation 2 yrs prior $500) We were interstate and the price was determined by the agent. The property was professionally furnished and on the agents advice offers by tender around that figure. The property is a 2/3 bed, 2 bathroom maisonette with a shared driveway to a single lock up carport 100metres to the beach (Hove adj Glenelg/Brighton). The whole thing quickly became a nightmare - No tenders/price reduction to offers over $485 (on the +ve side good groups at this price) but neighbour dispute with relation to the use of the common driveway (they blocked it off with a locked gate and a boxer dog!!) resulting in solicitors being used to resolve the problem, and after 8 weeks property removed from the market and re-rented. All up a pointless exercise costing us $6k for nothing. We do have to sell and have revisited the property with another agent. His initial appraisal $465-485 dropped to $440-50 within 3 days. Not being there have prices dropped this much in Adelaide?? Are there any signs of the market reviving? We could probably hold until this time next year if we really had to but is there much hope of a market improvement in a 12 month time frame. Any advice would be appreciated.
Adelaide-when to sell & how much to lose???
- Thread starter cegosling
- Start date
Depends who you ask really. Consensus from people within my circle is a continued cooling of the market over the next 12-24 months, so from a selling perspective not too rosy. Does present better buying prospects for cash flow properties with long term growth prospects.
Talking to some RE agent friends/family of mine however, the Adelaide market has meant to be going through a recovery for the last 18 months.... 'It's just around the corner'.
If you don't mind, but what is your reason for selling? There would have to be some serious reasons to consider taking such a hit through making a sale in the current market..
Talking to some RE agent friends/family of mine however, the Adelaide market has meant to be going through a recovery for the last 18 months.... 'It's just around the corner'.
If you don't mind, but what is your reason for selling? There would have to be some serious reasons to consider taking such a hit through making a sale in the current market..
Ah, that is unfortunate to hear.
With that in mind, I guess there are three potential options, sell now, sell slightly in the future, or rent out. Renting out doesn't sound to be a long term option, unless it was significantly cf+ you might be able to ride out this dip.
Have you consulted with any REA's to see what their view is? With properties sitting on the market for substantial amounts of time here, it might be a case where it will have to be sitting there a while for the right buyer to emerge..
All the best.
With that in mind, I guess there are three potential options, sell now, sell slightly in the future, or rent out. Renting out doesn't sound to be a long term option, unless it was significantly cf+ you might be able to ride out this dip.
Have you consulted with any REA's to see what their view is? With properties sitting on the market for substantial amounts of time here, it might be a case where it will have to be sitting there a while for the right buyer to emerge..
All the best.
It is certainly unfortunate to have such health problems. My thoughts are with you. You are to be commended for taking a pragmatic outlook and I have often thought that a quick loss can be the best loss.
This is an article by The Barefoot Investor contains some quiet good sense IMHO which may help.
http://www.adelaidenow.com.au/busin...ot-for-everybody/story-e6frede3-1226425599187
This is an article by The Barefoot Investor contains some quiet good sense IMHO which may help.
http://www.adelaidenow.com.au/busin...ot-for-everybody/story-e6frede3-1226425599187
What any market will be doing in 12 months time is in crystal ball gazing territory.
Is the property costing you money, i.e., is the rent covering all expenses? If so, then you may be able to afford to hang on longer.
If it is costing you money, then sometimes it is better to bite the bullet and sell. That will stop the extra cost each month, and possibly free up capital for investment. Even a term deposit will give you some extra income.
There is no guarantee that things won't be worse next year.
Marg
Is the property costing you money, i.e., is the rent covering all expenses? If so, then you may be able to afford to hang on longer.
If it is costing you money, then sometimes it is better to bite the bullet and sell. That will stop the extra cost each month, and possibly free up capital for investment. Even a term deposit will give you some extra income.
There is no guarantee that things won't be worse next year.
Marg
Thanks all. The property is not costing us anything at present as it is tenanted. It would just be good to offload and cement our future plans. We have has 2 further agent appraisals both of which sit in the $465-$485 region. I think perhaps the initial agent was either really pessimistic, or seeking as quicker sale as possible in the current market. Always disappointing not to make anything from a property, but at least based on these figures we will break even on P/price + ingoing/outgoing costs & renovations done.
