Selling IP to buy new PPOR

Hi Guys,

Just looking for some thoughts.

Partner and I are looking to sell our IP in coastal Western Adelaide and then buy in next suburb over to be closer to the beach with small children. We intended to build on IP but with the state of the building industry and timelines we are working with we think this will be the best option.

IP is in reasonable condition on 640m with 24m frontage. Target market is most likely to be developers and buyer / builders as it is a small 3 bedroom 1970's house. Tenant moves out in early July and looking to sell mid August.

Would your dress the property?

Partner is keen for RE agent to sell to one of their list's before taking it to market which I am not sure is the best plan to maximize our return. I feel like you can't sell a secret and needs to be advertised to broader market.

Would you advertise?

Will probably sell through property manager who doesn't sell a lot but trust them and have given a well below market commission rate. Is this an error against a more local RE who sells more local properties? I have no doubt this property will sell well as its in a good position and highly sought after school zone.

We would love to buy subject to sale in the area before selling but not super attractive to sellers at this point in time.

Thanks

 

I would be more concerned about minimizing hassle and stress and maximizing bargaining and buying position, minimizing outlay and maximizing terms such as settlement, lease back and vacant possession.

 

Another option you can consider is doing a Bridging Loan which allows you to buy first and sell within 6 to 12 months.

 

Thanks for the replies.

We have decided to sell our IP with staging and got to auction in 3 weeks with the property going on the market next Monday / Tuesday,

We will explore selling our other IP and PPOR together in the next few years with a better negotiation process with developers. When we are ready to do so.

I appreciate the bridging loan idea but advice we have received from multiple agents is the market segment we are looking at is starting to peak and a good idea to sell now whilst our other properties still have a lot of room for growth.

Will let you know how the auction goes!

 

Just a quick update.

We sold the house at auction last weekend.

6 registered bidders, only 2 bids and had to negotiate.

Market has definitely cooled a bit in last 4 weeks with interest rate rises on the horizon.

Got a little less then we were hoping for but will be buying in same market so happy overall.

Will be interesting to see where the market goes in western Adelaide in next few months

 

Congratulations on the sale of your property