Hi All, I am looking for some ideas on what might make sense to do in the current market conditions.. My PPOR in Adelaide (Flagstaff Hill) was turned into an IP when we relocated to Brisbane 18 months ago. Outstanding mortgage is $340k. I have been keeping in contact with the local agent who says the market is still pretty decent in the area and I should be able to get about $500k. I also own an IP in Tolland. Outstanding mortgage is $85k, rental is $180pw. This property is slightly positive cash flow, so obviously not costing me anything to hold, however, the value hasn’t moved much, if at all. The property also requires some work (if I were to sell), and I have good long term tenants. Now that I’m living in Brisbane (Wynnum), I don’t want to take on more credit to potentially buy a PPOR in Brisbane. I don’t know if I’ll even qualify for another mortgage based on stricter lending, but more importantly., I don’t want to take on more credit. Not sure if this make sense, in terms of timing the market… I was thinking of selling in Adelaide (while market apparently still quite good), then patiently waiting looking in Brisbane to buy a PPOR while the Brisbane market is apparently in decline? I am more than happy renting for the next 1-2 years. I know there have been very big price drops in Sydney and Melbourne, so I'm hoping Adelaide might get hit a little later (why im thinking of selling now while its good), then looking to buy in Brisbane (when prices really bottom) Does this make sense in terms of timing the markets? Cheers, Robbie
I do not think Wynnum is on decline, in fact, many here got into Bris during the Syd boom. Both places have the potential to increase it would seem, but not likely a boom, well, not like the Syd market pre credit changes. If I were you, I would buy a home bayside, even though you said you do not want to take on more credit, it would be your home, if the others basically look after themselves.
