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From: Paula Dee
Can you please give us some advice. Hubby and I purchased an old unrenovated Victorian double fronted home in Sydney on a busy road 3 years ago. It was a very good price at the time because it did not sell at auction (we never buy IP's at auction). Anyway we had the place re-valued by our lender (not a bank) at the end of last year to increase our LOC. We were happy with the valuation at the time because it came in at $100,000.00 above what we paid for the home. Now we are finding similar properties, though on quiet streets and totally restored are selling at auction at 250% more than our valuation came in at.
Questions:
1. Should we sell now in the hottest market we have ever seen? If so, should we sell as is and get a profit anyway (and grit our teeth when handing over the CGT to the govt). or spend $100,000.00 and restore the home to that comparable to the recent properties sold, then sell? (more teeth gritting)
Would the time taken to restore the place take us to a period in time were the market has cooled considerably? i.e. Spring with more sellers in the market? Nuclear war in India etc?
2. Should we hang on for the long term? If so, what should we do about the valuation that is so far away from recent comparable sales? It cost us $250 for the val. Even then, the lender would only increase the loan by $60,000.00. Can't buy much with that in Sydney! Please advise. We apologise for the long post.
Paula Dee
Can you please give us some advice. Hubby and I purchased an old unrenovated Victorian double fronted home in Sydney on a busy road 3 years ago. It was a very good price at the time because it did not sell at auction (we never buy IP's at auction). Anyway we had the place re-valued by our lender (not a bank) at the end of last year to increase our LOC. We were happy with the valuation at the time because it came in at $100,000.00 above what we paid for the home. Now we are finding similar properties, though on quiet streets and totally restored are selling at auction at 250% more than our valuation came in at.
Questions:
1. Should we sell now in the hottest market we have ever seen? If so, should we sell as is and get a profit anyway (and grit our teeth when handing over the CGT to the govt). or spend $100,000.00 and restore the home to that comparable to the recent properties sold, then sell? (more teeth gritting)
Would the time taken to restore the place take us to a period in time were the market has cooled considerably? i.e. Spring with more sellers in the market? Nuclear war in India etc?
2. Should we hang on for the long term? If so, what should we do about the valuation that is so far away from recent comparable sales? It cost us $250 for the val. Even then, the lender would only increase the loan by $60,000.00. Can't buy much with that in Sydney! Please advise. We apologise for the long post.
Paula Dee
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