Just curious to see what people would do in this particular situation...
You own a fairly standard but quite nice 2 bedroom, 2 bathroom, 2 balcony apartment on the Gold Coast, about 10 minutes from the beach (walking distance).
You paid $343,000 in May 2008 (this includes stamp duty and all legal fees applicable. The actual purchase price was $337,000).
You have paid off $50,000 from the initial loan, now owing $293,000. (the loan is not through a bank / lender, but through a family member and the majority of it pays no interest)
You have owned the property for almost 4 years. You want to move out and buy another property, but times are tough for sellers.
You have had 4 valuations from real estate agents over the past 18 months that gave a value of between $340,000 - $370,000 for the property. None of these really match up with recent sales of similar properties in the area. The sales of similar properties are between $300,000 - $340,000.
You and your partner's combined weekly (after tax) income is about $1,000.
Do you...
- Sell and buy elsewhere immediately (try to have the purchase and sale occur simultaneously as much as possible)
- Sell and rent for a while
- Move out and rent elsewhere and retain the property to try and get some more capital growth and rental income (assuming the new rent would be less than the rent you could achieve for your original property)
- Move out and buy elsewhere whilst retaining the original property for rental income and capital growth
Clearly that ^ option is best, but with the financials the way they are and the low weekly income, it is probably not a viable option.
I know (and several others around here also know) what I personally want to do, but I was just interested to see what you would do in this situation in terms of the financial aspect.
You own a fairly standard but quite nice 2 bedroom, 2 bathroom, 2 balcony apartment on the Gold Coast, about 10 minutes from the beach (walking distance).
You paid $343,000 in May 2008 (this includes stamp duty and all legal fees applicable. The actual purchase price was $337,000).
You have paid off $50,000 from the initial loan, now owing $293,000. (the loan is not through a bank / lender, but through a family member and the majority of it pays no interest)
You have owned the property for almost 4 years. You want to move out and buy another property, but times are tough for sellers.
You have had 4 valuations from real estate agents over the past 18 months that gave a value of between $340,000 - $370,000 for the property. None of these really match up with recent sales of similar properties in the area. The sales of similar properties are between $300,000 - $340,000.
You and your partner's combined weekly (after tax) income is about $1,000.
Do you...
- Sell and buy elsewhere immediately (try to have the purchase and sale occur simultaneously as much as possible)
- Sell and rent for a while
- Move out and rent elsewhere and retain the property to try and get some more capital growth and rental income (assuming the new rent would be less than the rent you could achieve for your original property)
- Move out and buy elsewhere whilst retaining the original property for rental income and capital growth
Clearly that ^ option is best, but with the financials the way they are and the low weekly income, it is probably not a viable option.
I know (and several others around here also know) what I personally want to do, but I was just interested to see what you would do in this situation in terms of the financial aspect.