Just Sold - What next?

[manageacc]

Hi All,

Just wanting some advice if I may..
We've just sold our 2 Br unit at North Sydney, and am going to start renting out at Cherrybrook (Duplex) as we're expecting babies in the coming months.
Needed more room as we're getting twins! = )

At the moment, we have Equity around 200K to use.

I'm hesistant to buy at the moment as I want to wait for the market to cool a bit. But I also hate renting as its money going into somebody else's pocket..

So if you could please share your views on:
1) Where to buy?
2) Is it wise to be renting?
3) If I was wanting to renovate/build on old properties, where is a good area of growth?

Thank you everyone!

 

[wylie]

Firstly, congratulations on the upcoming family. I am in Brisbane so cannot help you with areas but did you consider renting your unit and renting somewhere bigger for yourselves?

 

[Rolf Latham]

dunno if the "market " will cool much per se

If u can find something that presents value and passes the sanoty test, buy it ?

Because how do u know where the bottom is ?

ta
rolf

 

[manageacc]

Thanks for the congrats and response..

We did think about renting out the property instead of selling it..
but I just wanted to take advantage of unit price increases and lock it in..

We did want to buy in the areas like Ryde or Eastwood and some inner west suburbs, but the way prices have gone up, and setting of new price records in these suburbs is quite incredible.. hence my reason for wanting to find something where the growth has not happened... or places where I can develop the property..

 

[brrmm]

Firstly Congrats on the babies!!

Secondly, I think you'll have your hands VERY FULL once your babies arrive, you probably won't have to time to be renovating, believe me.

Don't know the areas you speak of, but are there suburbs next to those that aren't as expensive? Could you buy in these areas for the time being with a view to moving in say 2-3 years perhaps?

I wouldn't go and rent now. I always think it's best to sell and buy in the same market, otherwise prices start to rise and you're left behind.

Good luck with whatever you decide.

 

[Deltaberry]

Congrats. Must say though I can never see the value of selling if you aren't great at timing things. Even if you are you'd have to time it such that you think there's a 15% + drop in all honesty.

By the time you factor in your stamp duty (paid twice - once to buy and a second to buy back in after you sell your first), your agent fees, conveyancing and what not, I wonder if the value is there.

 

[Jacque]

dunno if the "market " will cool much per se

If u can find something that presents value and passes the sanoty test, buy it ?

Because how do u know where the bottom is ?

ta
rolf

Hi there

Congrats on twins btw- exciting but busy times ahead!!!

Rolf makes a salient point here- if we could all pick the bottom believe me we wouldn't be sitting here contributing to a forum but would be out on a cruise in the Bahamas reaping the rewards. No one can pick the bottom of the market until it's passed- believe me

I know Cherrybrook very well and don't really see a drop forecast, especially in the most popular price bracket $650-800K which is what the large majority of houses sell for in this suburb. Last purchase for one of my clients was in the early $700K's and was a lovely home, away from the power easements and in a quiet cul-de-sac 4x2x2. If you perpetually wait for a price drop it may never come and you may end up renting longer than planned. Buy when you can afford, don't over-commit and ensure you're 100% happy with the area. By all means, rent for a period and get settled, work out which section or area you want to buy in and then you'll know what you want to do. Also keep in mind that Cherrybrook is largely owner-occupied and isn't exactly mortgage belt material, which can protect you somewhat from large price fluctuations.

I hear what you're saying about the Ryde area- it's taken off like a bushfire and with no freestanding decent house in this area now under $800K (and yes I know we all define "decent" differently here!) the market has been really hot. However, don't think that areas like the Hills and Hornsby LGA's (where you're moving to) haven't experienced growth lately- because they MOST CERTAINLY HAVE!! Depending on what your budget is I can tell you what you're likely to get for your money. it's been frantic the last 9 mths or so though some agents are reporting a little softening in the higher end of these suburbs. Quality cheaper homes (median) and townhouses/duplexes etc, however, are selling within days of being listed. There is just an imbalance in the demand/supply levels right now.
Best of luck