How 2 sell your house on time!!
May 31st 2008, 9:52 pm
#1
Forum Regular
Thread Starter
Joined: May 2008
Posts: 253
How 2 sell your house on time!!
I hope this may be a solution - I'm serriously considering it
I am hoping to move to Perth next year and wondering if anyone has financial experience o can keep me right if I'm wrong. I plan to sell my house for 80% of its full price to one of these house buyer companies. I will then place my money into a high savings account (6%) for the year hoping to make up some of what I will have lost. I will rent property for a year which will again give me the chance to save a couple of grand. House prices will drop about 10% anyway so in total I will have lost very little but will at least have the flexibility of leaving next year when the time comes. What do you think??
Alan:
I am hoping to move to Perth next year and wondering if anyone has financial experience o can keep me right if I'm wrong. I plan to sell my house for 80% of its full price to one of these house buyer companies. I will then place my money into a high savings account (6%) for the year hoping to make up some of what I will have lost. I will rent property for a year which will again give me the chance to save a couple of grand. House prices will drop about 10% anyway so in total I will have lost very little but will at least have the flexibility of leaving next year when the time comes. What do you think??
Alan:
May 31st 2008, 11:14 pm
#2
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,397
Re: How 2 sell your house on time!!
I hope this may be a solution - I'm serriously considering it
I am hoping to move to Perth next year and wondering if anyone has financial experience o can keep me right if I'm wrong. I plan to sell my house for 80% of its full price to one of these house buyer companies. I will then place my money into a high savings account (6%) for the year hoping to make up some of what I will have lost. I will rent property for a year which will again give me the chance to save a couple of grand. House prices will drop about 10% anyway so in total I will have lost very little but will at least have the flexibility of leaving next year when the time comes. What do you think??
Alan:
I am hoping to move to Perth next year and wondering if anyone has financial experience o can keep me right if I'm wrong. I plan to sell my house for 80% of its full price to one of these house buyer companies. I will then place my money into a high savings account (6%) for the year hoping to make up some of what I will have lost. I will rent property for a year which will again give me the chance to save a couple of grand. House prices will drop about 10% anyway so in total I will have lost very little but will at least have the flexibility of leaving next year when the time comes. What do you think??
Alan:
FWIW I don't think the current slack in house prices in Australia has really started. Apart from the "boom" states there are many many over-extended mortgagees and lenders are at last getting chary of extending loans to people with no chance of paying them back apart from selling up. As the repossessions mount I think it will get worse and prices will at best remain static overall. The only thing holding prices up now is the number of immigrants trying to buy - but there's got to be a limit on how much they can afford before having to stop eating!.
Jun 1st 2008, 3:17 am
#4
Crazy Cat Lady
Joined: Apr 2004
Posts: 65,493
Re: How 2 sell your house on time!!
How do you know you will sell your house for 80% to one of these companies? Do you have that amount in a legally binding document? I'd trust those people as far as I could throw them. 80% sounds high to me, that's if they even decide they like the look of your house.
Jun 1st 2008, 3:58 am
#5
Forum Regular
Joined: Jul 2006
Location: Perth
Posts: 195
Re: How 2 sell your house on time!!
You have to remember that when they say they will give you 80% of the value of your property, what they mean is 80% of what they think your property is worth, not what you think it is worth
. I think you should keep thinking and try and find another solution.
. I think you should keep thinking and try and find another solution.
Jun 1st 2008, 4:10 am
#6
BE Enthusiast
Joined: Dec 2006
Location: Chelmer and Coolangatta
Posts: 612
Re: How 2 sell your house on time!!
It's worth getting the figures. It would be a way of buying here if you wanted to straight away and can afford to take loss for yours.
I hung on and rented mine out. I'm not getting anything like what I would get in a bank, not even British. Meanwhile it's getting harder to sell, the pound drops against the Aud, and cutting and running sounds attractive.
I hung on and rented mine out. I'm not getting anything like what I would get in a bank, not even British. Meanwhile it's getting harder to sell, the pound drops against the Aud, and cutting and running sounds attractive.
Jun 1st 2008, 5:09 am
#7
BE Enthusiast
Joined: Jun 2003
Location: Melbourne, Victoria
Posts: 524
Re: How 2 sell your house on time!!
I hope this may be a solution - I'm serriously considering it
I am hoping to move to Perth next year and wondering if anyone has financial experience o can keep me right if I'm wrong. I plan to sell my house for 80% of its full price to one of these house buyer companies. I will then place my money into a high savings account (6%) for the year hoping to make up some of what I will have lost. I will rent property for a year which will again give me the chance to save a couple of grand. House prices will drop about 10% anyway so in total I will have lost very little but will at least have the flexibility of leaving next year when the time comes. What do you think??
Alan:
I am hoping to move to Perth next year and wondering if anyone has financial experience o can keep me right if I'm wrong. I plan to sell my house for 80% of its full price to one of these house buyer companies. I will then place my money into a high savings account (6%) for the year hoping to make up some of what I will have lost. I will rent property for a year which will again give me the chance to save a couple of grand. House prices will drop about 10% anyway so in total I will have lost very little but will at least have the flexibility of leaving next year when the time comes. What do you think??
Alan:
Jun 1st 2008, 6:41 am
#8
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,397
Re: How 2 sell your house on time!!
It could go either way. But consider: Australian house prices have rocketed overall for several years now, way beyond the cost of build in many cases. They have been kept artificially high (like for like with respect to similar UK units) by the growth of population and by the willingness of lenders to pump cash into the market, which just goes into inflating the "values" of houses on sale.
Now that lenders aren't so willing to shove money at people who are overextended, that effect at least has diminished. In an ideal world this would lead to a sharp reduction in prices, especially as the worst of the 'junk" mortgages fall apart and the units are sold at firesale prices. It's really only the increasing number of people entering the market that can sustain these still high valuations. Which way it goes is anyone's guess: my own is that there will be a long period of price reductions or static prices, especially at the lower end of the market.
There are still plenty of people in the capital cities who are buying $3m plus places and this segment is probably different in kind.
A new build just up the road sold recently for $2.75m: the land cost was about $800k and the build cost probably in the order of the same: nice builder's profit - but only because it was a Sydney buyer who equated local prices with those in town! Otherwise things are very slow and asking prices are nothing like selling prices.
Now that lenders aren't so willing to shove money at people who are overextended, that effect at least has diminished. In an ideal world this would lead to a sharp reduction in prices, especially as the worst of the 'junk" mortgages fall apart and the units are sold at firesale prices. It's really only the increasing number of people entering the market that can sustain these still high valuations. Which way it goes is anyone's guess: my own is that there will be a long period of price reductions or static prices, especially at the lower end of the market.
There are still plenty of people in the capital cities who are buying $3m plus places and this segment is probably different in kind.
A new build just up the road sold recently for $2.75m: the land cost was about $800k and the build cost probably in the order of the same: nice builder's profit - but only because it was a Sydney buyer who equated local prices with those in town! Otherwise things are very slow and asking prices are nothing like selling prices.
Jun 1st 2008, 6:58 am
#9
Forum Regular
Thread Starter
Joined: May 2008
Posts: 253
Re: How 2 sell your house on time!!
It could go either way. But consider: Australian house prices have rocketed overall for several years now, way beyond the cost of build in many cases. They have been kept artificially high (like for like with respect to similar UK units) by the growth of population and by the willingness of lenders to pump cash into the market, which just goes into inflating the "values" of houses on sale.
Now that lenders aren't so willing to shove money at people who are overextended, that effect at least has diminished. In an ideal world this would lead to a sharp reduction in prices, especially as the worst of the 'junk" mortgages fall apart and the units are sold at firesale prices. It's really only the increasing number of people entering the market that can sustain these still high valuations. Which way it goes is anyone's guess: my own is that there will be a long period of price reductions or static prices, especially at the lower end of the market.
There are still plenty of people in the capital cities who are buying $3m plus places and this segment is probably different in kind.
A new build just up the road sold recently for $2.75m: the land cost was about $800k and the build cost probably in the order of the same: nice builder's profit - but only because it was a Sydney buyer who equated local prices with those in town! Otherwise things are very slow and asking prices are nothing like selling prices.
Now that lenders aren't so willing to shove money at people who are overextended, that effect at least has diminished. In an ideal world this would lead to a sharp reduction in prices, especially as the worst of the 'junk" mortgages fall apart and the units are sold at firesale prices. It's really only the increasing number of people entering the market that can sustain these still high valuations. Which way it goes is anyone's guess: my own is that there will be a long period of price reductions or static prices, especially at the lower end of the market.
There are still plenty of people in the capital cities who are buying $3m plus places and this segment is probably different in kind.
A new build just up the road sold recently for $2.75m: the land cost was about $800k and the build cost probably in the order of the same: nice builder's profit - but only because it was a Sydney buyer who equated local prices with those in town! Otherwise things are very slow and asking prices are nothing like selling prices.
I have been looking at buying a new build in Aus but they seem reluctant to give me a price. Can you tell me if you can buy a newly built 4 bedroom house (which I believe I will need to wait approx. 6 months for it to be built) for $370,000? Thanks again for your advice.
Jun 1st 2008, 7:12 am
#10
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,397
Re: How 2 sell your house on time!!
Thanks a great deal for your advice.
I have been looking at buying a new build in Aus but they seem reluctant to give me a price. Can you tell me if you can buy a newly built 4 bedroom house (which I believe I will need to wait approx. 6 months for it to be built) for $370,000? Thanks again for your advice.
I have been looking at buying a new build in Aus but they seem reluctant to give me a price. Can you tell me if you can buy a newly built 4 bedroom house (which I believe I will need to wait approx. 6 months for it to be built) for $370,000? Thanks again for your advice.
Depends on where the house is, standard of build and accessories etc - and also, here, what they reckon you'll stand!
They seem reluctant to get back to you? Welcome to the Australian Business Model: most companies just don't put themselves out to get back to you until you have contacted them three or four times. It's too much trouble, you see.
Jun 1st 2008, 7:44 am
#11
Joined: Jan 2006
Posts: 3,376
Re: How 2 sell your house on time!!
Piece of string!
Depends on where the house is, standard of build and accessories etc - and also, here, what they reckon you'll stand!
They seem reluctant to get back to you? Welcome to the Australian Business Model: most companies just don't put themselves out to get back to you until you have contacted them three or four times. It's too much trouble, you see.
Depends on where the house is, standard of build and accessories etc - and also, here, what they reckon you'll stand!
They seem reluctant to get back to you? Welcome to the Australian Business Model: most companies just don't put themselves out to get back to you until you have contacted them three or four times. It's too much trouble, you see.
