To sell or not to sell

Hi everyone,

This is my first post. I'm fairly clueless as to the intricacies of the real estate market so I'm hoping some of the more experienced members can help me with a dilemma I'm having.

My wife, daughter and I have recently relocated from Melbourne to Hobart. We have a home in Notting Hill (value about 500- 550k, mortgage is at 135k), which is tenanted at 330 p/w. The move to Hobart is permanent and we are renting here at the moment. I have approached some mortgage brokers about a loan but as I am now self employed with only 6 months of financial records, (major career and seachange happening),I am forced to get a low doc loan which doesnt give us enough to buy a family home in a decent suburb.

I am wondering if we should sell there and buy here, or is it worth my while to wait for another 18 months (apparently they need two years worth of financials if your self employed).

Any advice would be greatly appreciated.
 
Im no maths expert, nor do I know the area your home is in but if your property is valued at approx $550k, the rent return is damm poor compared to what is currently happening in many markets across Aust....I'd be flogging off that place and seeking a decent investment..

Thing is the best plans can come undone, things may not work out in Tassie...better the dog you know than the dog you dont know...may pay to rent for awhile in Hobart and see how the market goes after the next rate movement....

I just came back from Hobart actually, some good buys sneaking in around Howrah, nice handy suburb...where are you wishing to buy in Hobart?

Best of luck
 
I tend to agree with csc2. That seems like a very low return, i fought an average return these days would be around $500-$550 per week for a home worth around that price. Obviously there may be reasons for this, like renting to friends or family.

On the selling matter, I'd also consider the possible future growth of the property. Would the property in Melbourne appreciate faster than a property in Hobart? I hear that tassie is good for rental returns but not so good for capital growth?
 
Thanks for the feedback.

Howrah is actually the suburb I'm the most interested in and its where im renting at the moment. As far as rental return goes we originally had it advertised at $400 pw but lack of immediate interest combined with a bit of panic on our part (first time landlords), and the urging of our property manager saw it go down to 330.

I'm starting to think we stooged ourselves a bit, but it is being raised when the lease expires in November.

The problem I have is that rent in Hobart is dispropportionately high considering property values and i hate the thought of all that dead money leaving my bank account forever, never to return.
 
probably the best option is to have the property apraised by 4 or 5 agents...........then take no notice of their overinflated prices and decide on a middle of the road price....do some serious research on rp data or pds of recent sales to get a good feel of things.

make no mention to any agent that you are moving permanently.........

howrah is lovely.....go up to skyline drive...some nice homes up that way and the view is exceptional...almost bought there myself but couldnt hack the cold in winter i dont think....

be patient, get in sweet with a few agents, tell them what you are looking to buy...be patient, be patient, be patient!!! a good deal will popup if you plan and make yourself known..........dont get sucked into r.e agent hype....do your due diligence carefully and research research research!

other areas of tassie i love: shearwater, boat harbour beach....downside though will be limited opportunities for employment...........if you are working in hobart and dont mind a long drive look at white beach, its a fair drive but the little beach there is brilliant! land and homes are dirt cheap......howrah is the go for mid range housing in hobart, perfect and handy to everything!

good luck!!!

best of luck...post when you have purchased in this thread, love to see how you progressed.....
 
Top