As it stands,our house is worth $550k.
There is a large influx of money in the town and we know that the house prices are going to increase.
Should we sell now and build a bigger house or just stay as we are?
We can afford to.
If we build it would cost approx. $700k for what we want now.
PS We are in Regional NSW
Should We Sell and Build Bigger or Just Stay as Is?
grabngo on 22/06/2017 - 10:23
Comments
I was thinking more along the lines of capital gain.
Having a larger house does not affect me much as it means more work etc.
The mrs however would be happyHappy wife, Happy life. As they say ;)
or … no wife … more life…
So your house is worth $550,000 and your desired house will cost you $700,000 to build.
How much are houses in similar location to your current property, with the amenity and features of your desired house selling for?
As k-rokfm says, do you need a bigger house at the moment? Is there an opportunity to hold?
You say housing prices in your regional area are rising? What increases are you seeing over what periods?
There are many factors at play, so it'd be good to get an understanding of your current situation.
we can hold and just be happy.
the increase will be approx. 30$ in the next 2 years.sorry meant 30 percent
If you can hold and be happy, that's good to hear. Nothing is rushing your decision.
If you say that your development cost is $700,000 to upgrade your current house, does the market in your area suggest that your property could conceivably be valued at circa $1.3 million?
From the limited amount of information you've provided, I would hazard a guess that an incoming purchaser could buy vacant regional land and develop a house comparable to your (or your wife's, more likely) "desired" house for less than $1.3 million, as I assume at least 30% of that $700,000 outlay would be for demolition and land clearing.
But it's a complicated game. Have a look around town at real estate listings. See what is comparable to your desired product and for what price. Check out house and land packages. See where you stand.
Edit: Just saw your comment about 30% increase in two years. That's incredibly high. Any particular reason to why you think it's going to climb so quickly? Also in knowing this, why would you want to sell?
Sorry OP, to clarify — are the options you are exploring actually:
- Do nothing
- Sell current property ($550,000) and buy land and develop new house ($700,000)
- Redevelop current house ($?).
I am confused by the original post.
number 3 is not an option
How is the projected 30% increase figure arrived at?
Maybe OP's planning to split the house and build 2 properties on it. Hence the 30% lol.
Otherwise OP, I think generally if you just build a new house, your property isn't going to be worth that much more.
It's the land that really counts around here in Sydney.
If your just building a brand new home, its only going to make the sell value a bit higher in contrast to building some townhouses / villa.
How much do you own of your current house? We upsized 2 years ago because we wanted to, and we got sick of a neighbour carrying on about our kids being kids in the backyard. The neighbour brought our plans forward by a couple of years.
We bought in a sellers market so we're able to purchase before selling and could have survived easily for a few months if our old house did not sell, but had no trouble selling. If you can afford to do build, then sell I reckon it is a good option, I'd hate to move to a rental for 12months or so while building. If your area (apparently secret) is going to be good for selling for a few years to come then now is a good time to upgrade becuase you'll be able to sell more quickly.
is it possible to build the new one and also keep the 550k house for another 2 years so you can realise the 30% price increase?
Does the $700K include the land or just build?
Not clear
Unless you need the space, no. Use that unrealised 30% increase to invest elsewhere.
Do you want a bigger house? - I think that will be the answer to your question