In cooling off - Sydney - What would you do?

Discussion in 'Investment Strategy' started by squarepeg, 24th Mar, 2020.

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  1. squarepeg

    squarepeg Member

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    I have been looking for a PPOR 2 bed unit for a long time and found one that I am currently in the cooling off period for. I made the offer for the place about 3 weeks ago.

    With everything going on at the moment with Coronavirus I have had several friends telling me to pull the plug and forfeit the 0.25% due to forecasted drops.

    So, what would you do? I am currently renting and in a stable long-term job so should be ok on that front.
     
    squarepeg, 24th Mar, 2020
    #1
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    You face missing it and losing the deposit and struggling to find another or maybe you buy another cheaper. Who knows.
     
    Paul@PAS, 24th Mar, 2020
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    what's the worry?

    do you think you might lose your job, or values will drop?
     
    Terry_w, 24th Mar, 2020
    #3
  4. squarepeg

    squarepeg Member

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    Values dropping. Talk of 25% drops has made me very uneasy going ahead with it.
     
    squarepeg, 24th Mar, 2020
    #4
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No one knows for sure, but there is a real possibility of values dropping - people are starting to hold back on purchasing for sure.

    If you pull out you might lose some money, but you can always buy another property in the future - assuming you can service etc.
     
    Terry_w, 24th Mar, 2020
    #5
  6. twobobsworth

    twobobsworth Well-Known Member

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    If in cooling why not offer 10% less or pull the plug. You'll probably spending another 10-15% in rent for the next 12 months while you um and ah of when to buy next.
     
    Last edited: 24th Mar, 2020
    twobobsworth, 24th Mar, 2020
    #6
    Just wondering, mikey7, Property Twins and 2 others like this.
  7. matt_j

    matt_j Well-Known Member

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    Pull out
     
    matt_j, 24th Mar, 2020
    #7