Selling Your Home - Seeking Market Advice

Hi Guys,

Please let me first introduce myself, my name is Scott, my partner & three dogs live in Ballarat, Delacombe in the new Winterfield estate in Stage 1A, two blocks from the Town Center.

We purchased our first block of land in March 2017, A flat 554sqm for $125k, expected titles blew out an extra year and we moved in August 20th 2019, We have now lived in our house for just over a year and plan to waste no time and look as selling as we have now lived in our home for 12 months meeting the FHOG eligibility and realize we are in a great position as the surrounding area property value has increased greatly.

We built our 203sqm home for roughly $225k with lots of upgrades, high ceilings, evap, square set, landscaping etc and have got the home ready to what I feel is at selling point.

We have had the home Appraised today by 3 different agents all falling around the $500k-$525k area.

We have learned the prices of the agents fees, which got me thinking, agents are usually networking, going above and beyond for clients to meet in person and talk through everything, but there is such a demand lately that people are buying things unseen online, especially from Melbourne from what they told me. (Now I am really thinking, Why do I need you)

We have had some friends have a positive experience with "Next Address", that sold their house within a week for the same local appraisals figure they received in a close area to us.

Has anyone had any experience in selling their own property through one of these providers?

Which leads me to my second question, do you think I should be selling now? My dad always taught me that cash is King. If I can lock in this profit, assuming we sell for $520k and cost was $350,000 so roughly $170k profit minus taxes & fees within a year and our inital savings and the FHOG maybe $100k profit, so I figure I lock that profit it, if the market takes a fall at least I wont be in a new purchase and can pick up something cheaper if there is a downturn or simply not cop a 5-10% drop, or do I hold this property for 1 more year until our other block finishes titling and then building, expected to title Q4 this year and built by August 2021.

If I sold, I would rent until the house is built and pay the dead money, which would be roughly $15,000 over 12 months.

Alternatively I could sell this house, buy an existing home that is older or out of town, fix it up and on sell in one years time, avoid CGT and move into the newly built home in Alfredton.

Really Just need some advice Thank you in advance.

 

Ever thought about owning more than one property? If you believe there is long term growth.....

dont know what your goal is. If its just to eventually buy in alfredton (no idea where that is), fine. But theres no investment plan here. Fixing up an old place and selling for a profit in a year, in this environment seems ambitious.

cash is great and all, but taking profits now might mean missing out on more profit later. Just general comments, no idea what ballarat is like.

btw is your dad a successful investor?

 

I would make sure you have your end destination identified and next step well sorted out before making the jump. I am currently in the risk averse category so you can put my comments in context.

My belief is that the current re market is currently fairly stable but prices will decline unless the massive stimulus is continued and I don't see how it can be - especially the super withdraw effectively finished and the other main props are being wound down. I am not predicting massive falls but 10-20% is not unreasonable. For your location it partly depends on how many people are going to flee Melbourne for the perceived safety and life style of the bush. Whatever your path less debt is in the next couple of years is likely to be a blessing.

My own path was through renovating my ppors and moving on every 4 to 8 years. It allowed me to build up a lot of sweat equity with little risk other than my decorating choices .

If you stay in the same market then selling now and reinvesting into a cheaper property that offers better cap gains is not really a risk but an opportunity.