Should I sell right now?

I was considering putting my PPOR on the market with the view to releasing some equity and putting a deposit down on a H&L package.

The agent asked today if I still wanted to go ahead.

I'm really torn, I'm not currently in a position where I need to sell but in 6 months that could be very different... who knows what's going to happen?

I also don't know If I'm likely to accept a sale price significantly under what I want. Thus I'm worried I will just be throwing away $3k in marketing expenses.

Would you sell now or hold, hunker down and hope for the best?

 

I guess this is on many people's minds but have you done stress test with different scenarios? Job stability? Other income from IP or shares? You're the only one who will know to be honest. Will your H & L investment achieve the results you want? Hard to say isn't it?

 

Will your H & L package actually make it to completion, could be the builder might go under with no demand for product etc.

You'd have to know what your minimum dollars are for what you would accept etc.

With social distancing open homes might be less attractive etc.

 

a very good point. it is more worrying that the builder goes under and you will be left with a mess.

 

My current house is too small for our growing family so this isn't an IP but a PPOR. Plan was to rent something bigger in the short term while we wait for the block to title.

Where I want to purchase land takes up to two years to title. So I was intending to put the deposit down on the land and wait until the block was closer to titling before putting a deposit down with a builder.

 

a lot of unknowns here. atm i think buying in the hope...may not be the best thing unless you have heaps of buffer and contingency plans...

 

I would be putting down a 5% deposit on a block of land where the balance wouldn't be due for 18 months. I wouldn't say that would be a huge loss.

My issue is more around what will happen to the resi market just in the next 3 to 4 weeks. Lets say I move now and I have my property on the market by the end of next week. Will it sell for a reasonable price or have I just blown $3k in marketing the property?

 

3k in marketing will be a small price to pay if you are able to sell now, or a decent amount of money spent to confirm your "what if?" scenario.

I'd say better to market and lose money on the marketing, then wonder if you could've sold before prices decrease (if they do)

Considering you wont need to settle on the block for another 18months, that's if the time frame doesnt increase/disappear altogether, then you wont need to sell for about 15months, and even if you were to settle on the block of land, could you hold the land without needing to sell and build straight away?

 

If you don’t need to sell I would be sitting tight, way too many unknowns currently. Things are changing dramatically every day, the chances of finding a buyer atm will be very slim.

See if the agent would have anyone on their books and might be able to secure a buyer off market.

I wouldn’t be putting down a deposit on a block of land either, prices will come back dramatically in the coming months regardless of what area you are in.

 

love that optimism Tom... but I think you’ll agree that this week has been an Australian economic reset.

With unemployment hitting 10, 15, 20% things are sure to hit property hard if rents are falling and finance dries up. A shiny new home will be wayyy down the list. This is going to be a deep recession.

 

I’m interested to know what you base this on?

 

@TylerJamesson summed it up perfectly, baton down the hatches!

 

I’ve got a property off market with the realestate atm. No advertising and no staging.

It’s only been a few days. No bites yet.

Free kick of sorts. If it sells all good and well.