NSW Quakers hill- townhouse - Is it good time to sell

Hi all,

I have a near new 4 bed 2 bath 2 garage townhouse IP in quakers hill on Ramona street quakers hill. I can see so many townhouses going for the early 700s.
Is it worth waiting or should I sell now and invest it elsewhere since I don’t see much scope of capital growth for townhouses. An agent I spoke gave me an appraisal of about 730.

what are your thoughts.

 

What will you invest in if you sell? It will cost 3% fees to sell + capital gains tax, and another 4% to buy another property.

Are you at your borrowing limits?

 

Planning to invest in a house interstate.
This townhouse is doing ok but then intention was always to sell since there is a fair bit of equity.
Not sure whether this is the right time though.

 

Not at borrowing limit but want to realize the equity

 

Nobody charges 3% commission atleast in sydney...no CGT since it was first home where we stayed before renting

 

Will the interstate property perform better than the townhouse?

Is holding both an option? When does the 6 year rule finish?

If you hold both, will you need the borrowing capacity or equity to buy ppor?

 

My post is more on checking if it’s the right time to sell in Quakers hill rather than worry about my borrowing capacity...

 

All of the lead indicators and industry forecasts suggest Sydney prices will be higher in 12 months than they are today.

 

Simple,

it is very hard to make a call if someone donot live nearby. It looks QH region is different cattle of fish as it is preferred by certain communities who works in many sectors.

Set townhouses at Highfield road corner came to mkt for rent over 500 pw. I thought this will struggle, all went within three weeks. Demand was pretty good. Sometimes TH struggle to sell but in the upmkt it will be quick. Romana st is well placed and people prefer the street.

Other states may perform better than Sydney over next few years. You should be able to make money if you know the states local mkt well. For TH with 730k price tag is well priced given land and property is about 780-800k. Prospect to increase in value substantially may be slim given more houses will be coming in future.

 

Because you are thinking in absolutes and not opportunity cost and alternatives, which you probably should. You are looking at right / wrong instead of better / worse.

The only way its the right time is if the Quakers townhouse crashed next year after you sell and stayed down forever.

 

Yes you may be right...but townhouse values have been decreasing over time since not many prefer to buy a townhouse especially in that 750 to 800 k budget when they can get a nice block of land in the same area.

 

Agree ...but i feel townhouses value becomes very less when the property becomes older...there is no land component for appreciation. What do you think of that? If it had been a house, I would not think of selling now./

 

You are right... Rental demand is pretty good too. this particular townhouse on Ramona sold for 750K which is the highest I have ever seen in that area and somewhat like 2017 prices.. What are your thoughts?
https://www.realestate.com.au/property/unit-5-22-24-ramona-st-quakers-hill-nsw-2763

 

A townhouse has LESS land, yes, but depends on whats around it. If it was all units around it, the townhouse would still be desirable.

imho there are two main elements to price increases. Demand for the property, and redevelopment potential. Redevelopment potential for a townhouse is less than a house.

You are still not thinking about the bigger picture. Your interstate purchase is not dependent on selling Quakers? Then selling means you pay fees and lose whatever gains (even if it's lower, which you just suspect) you would have made on it. This then has to be compared to what you would buy instead with the proceeds of Quakers. Not so much the interstate property, since you could buy that whether you sell or not.

Bottom line. You just think Quakers will underperform. But is holding a property that goes up at 3% a year better than not holding it at all? What would be better, such as buying something else that will appreciate more? You are not asking these questions.

 

Buying something else interstate which appreciates more is the main objective ...and yes it don’t dependent on selling this townhouse ...

 

By how much is the question

 

Look into your crystal ball

 

How much did you buy your townhouse for and when?

 

The conditions are very good for selling. Low interest rates, low stock and strong demand in the NW.

It's impossible for anyone to suggest that holding on for 6 months more may yield you more. Only takes a COVID outbreak to shut down a city.

You should have no problems in selling presently and if it helps move you towards your goals go for it.

I've had a number of properties in Quakers Hill and Acacia Gardens and they all did very well. Up, down, sideways, flat, up.

 

Ha ah...wish we had one like that