Is it time to sell for upgrading PPOR in Sydney?

Hi! Guys,

Thank you for supporting and sharing your deep knowledge to us.

We are thinking to sell our PPOR in Leichhardt in Sydney to upgrade our PPOR somewhere near the water side. Our plan is to sell it now when the market is still doing ok and then catch a good one when the market is more down in the next 3 - 12 months. We have a place to live after selling our house so we can wait until the market goes down a bit to buy.

Do you guys think it is good time to sell in Sydney and any suggestion for the good suburbs with good potential near water, free standing house. budget is around 2 mil.

It would be really appreciated if you can give us your thought.

 

The only place I can think of for a freestanding house near the water around that price is the Sutherland shire, which may be too far for a lot of people, given that you’re from Leichhardt.

 

Yes,,, thats bit far. I know it is very hard to find a house with that budget
Do you think it is good time sell anyway?

 

I'm starting to to hear that things are tightening up in terms of quality stock in the area; might be worth talking to a couple of agents to get a feel for how many buyers are out and if it might be a good time to sell (happy to send you a couple of recommendations of honest agents in the area we've used previously).

If you're buying & selling in the same market and upgrading then it can make economic sense as long as the conditions in both markets are similar.

Depends on how much space/what size of property. $2m buys you something anywhere from Balmain out to Gladesville/Putney as an example. Waterside... not waterfront obviously

 

I think if you’re selling a PPOR to upgrade it should be fine because you’re buying and selling in the same down market, as long as you’ve got a stable income etc. and there’ll definitely be less competing buyers although the quality stock may not come on the market for owners who hold out. Actually I live in the shire myself and the train commute (around 1 hour) isn’t too bad as it’s a straight route to the city. And coincidentally I very recently sold my IP townhouse in Leichhardt - I knew it was a really bad time to sell when the auction bans came but after preparing this for months when there was a mini boom, I just wanted to deleverage and at that moment thought renting it back out to a tenant who could potentially lose their jobs wasn’t a very good option either. However houses seem to hold up better in Leichhardt so you might fare well.

 

Thank you so much for your reply. Yes.. we are considering Putney, Gladeville as well. Obviously not water front but water side...just small freestanding we could afford

 

Thank you for your opinion. Yes..we think that it is ok to upgrade in down market. Shire is great area..just bit far from work & school for kid. I think you sold the townhouse in leichhardt at the good time.

 

In your case, I hope you time the market perfectly.

It's still a little up on the air how much the market will actually drop, it will drop no doubt about it. But it could also bounce back up fast.

Selling at the bottom and buying at the bottom is a good thing, however the quality of the stock on market during the period is another thing.

 

Thanks for your post. Hope we buy at the right time

 

Problem is, nobody knows.. which is why the transaction numbers are so low. Everyone's holding out. At least the good thing for OP is no competitions!

 

I also want to upgrade my PPOP but worry about serviceability to get the loan to buy a better PPOP after selling the current PPOP. What is the safest approaches?

 

Well safest approach is to actually do a calculation to see what is your borrowing capacity is and including the net proceeds from the sale of your property to see what you can buy next.

If you talk to an agent, they might say to do a bridging loan, which is the worse thing ever to do in this market.

 

Speak to a Mortgage Broker prior to making the decision would be the best bet imo