Looking at selling PPOR

[pinto2k]

Hi all,

I currently live in the south-west Sydney - Blair Athol - and am looking at selling and buying close to Parramatta (wenty/pendle/toongabbie/northmead) without to renting in the transition.

I have a large family living in the house and it would make it difficult, especially for the couple of elderly family members, moving multiple times (if we look at the option of selling, renting somewhere until we buy and then move again).

I also have approx 40-50% equity in my house.

Is there any tips or tricks that anyone can give me.

I was told by the REA that in the contract I can make my settlement 6 months which should to give me a bit of flexibility whilst I look for another property.

Also, to be honest, I'm a bit scared selling my PPOR just incase I don't find a place in time, looking for some re-assurance that everything will be fine ... it will be fine... right?

 

[mumbai]

I was told by the REA that in the contract I can make my settlement 6 months which should to give me a bit of flexibility whilst I look for another property.

This should work. However, you could be limiting buyers.
Start your ground work on deciding the suburb you want to buy as you have listed quite a few. The prices in these suburbs have gone pretty high already.
All the best!

 

[allsuccess]

Does finances allow you to keep your existing PPOR and convert to an IP?

 

[Brady]

Speak to a decent banker or broker. With that amount of equity you should be able to finance the new purchase whilst still holding the existing property. Then you could move into the new property and sell existing without having a period of renting. This process should be very simple, just need to factor in interest costs whilst holding both.

I wouldn't be selling before having somewhere to go.


But yes it will be fine

 

[MightyWill]

I've seen a contract with a special condition in that the vendor will rent on a monthly basis post settlement and will provide 1 months notice before they move on. You could put this similar clause in your contract. Obviously with the property not being vacant possession, it will only attract half the market.

The reason for them renting it out once they have sold it was for the exact reason and concern you have.

 

[neK]

How hot is the market in area which you are planning to sell? Do you see it dropping considerably in the next 6 months?

From my personal experience, I would actually buy first (ask for a longer settlement period, say +6 week on top of the standard 6 week settlement - therefore making it 12 weeks), then sell later. Or apply for a bridging loan if need be.

Reason being as a seller, the speed at which you sell at is determined by price. For example, say your place is worth $500k and other houses in the same location were listed for $490-$510, if you were prepared to let it go at $480k, the sale could happen sooner rather than later.

The positive of this is that you don't have to worry about not having a roof over your head and have time to make a rational decision. Obviously the downside of this is if the market is on a downward trend, you might not get as much.

For me, I sold then I couldn't find a place to buy (it took 11 months of solid weekend inspections) - which was a terrible feeling. I was attending opens every weekend hoping to buy, every time i missed out i got more desperate and thats when the emotion takes over and you offer more than you should simply because you want to get back in the market and have that roof over your head.

 

[pinto2k]

For me, I sold then I couldn't find a place to buy (it took 11 months of solid weekend inspections) - which was a terrible feeling. I was attending opens every weekend hoping to buy, every time i missed out i got more desperate and thats when the emotion takes over and you offer more than you should simply because you want to get back in the market and have that roof over your head.

This is what I'm worried about.

My broker if checking how much I can borrow based on my equity and income.

My property is dual occ and the REA has told me he has 5 buyers that are looking for this exact kind of property and are willing to pay top dollar right now, but if I sell now then I could get stuck in your position.

REA reckons he can get record price for the suburb for my house if I sell now, to show he was genuine he said he will only sign me up for 24hr contract instead of 3 months.

For anyone that knows the Blair Athol nsw area, what are your thoughts on price in the next 6-12 months

 

[pinto2k]

thanks everyone for your suggestions and replies