Hi,
I have been thinking of selling my PPOR in the current financial environment with the impending rate rises and the royal commission after effects.
My mortgage repayments are around 20% of my monthly income and my wife works as well so it's not a question of affordability but I want to cash in when the price is right and want to adopt a wait strategy until I find the right opportunity. Don't have a deep connection with the area that we live in so that isn't an issue as well.
The only thing that dissuades me the the prospect of moving on rent and the potential of moving houses when the owner has to sell(could well be a possibility if things turn ugly).
Has anyone been thinking on these lines?
Thanks.
Selling PPOR in The Current Financial Environment
Lsharemyhead on 02/05/2018 - 09:55
Comments
You'll have to pay two lots of stamp duty plus real estate commission, so unless the value of your home is going actively down and won't recover (since you don't care about the value until you'll retire and be thinking of moving to the Gold Coast or whatever) then it isn't a good idea. Plus moving sucks.
Pardon my ignorance but doesn’t the buyer pay the stamp duty?
In NSW, only buyer pays stamp duty.
Though there are the usual costs of moving as well and the inconvenience and time which are not as measurable.
"moving on rent and the potential of moving houses when the owner has to sell("
fixed lease
No. As I do not have a crystal ball (OzB never seems to have any deal on them), can't really tell where the housing market is heading tomorrow.
it'll be a mid-long term planning from here
once shit starts to slide , it'll take another 3 years to hit bottom
given ozzie's pride on house ownership, it might take few more years before they give up their house & go belly up
20% of your pay for a house you live in. Why do you care if the value goes down as a PPPOR? as long as you can make repayments then who cares.
he wants an upgrade but not at current prices
he wants to cash out his equity for upgrades later on
Exactly
why not refinance loan and take out excess PPOR equity for another home purchase?
provided OP willing to turn current into IP and take on finance for 2 properties during downturn.
@phunkydude: Thanks mate. Its like youre exactly making sense of my situation. I dont want to be in a pickle with too much debt when the times are not right.
dont try to time the market with your PPOR, unless you are happy to rent and deal with the issues of renting (and transaction costs, which eat up a LOT of money)
PPOR is not an investment
You'll always need a roof over your head, makes no sense to sell your PPOR especially as you are under no mortgage stress.
Sure if it was an investment property, but not PPOR.
I would only sell now if you are willing to purchase another house in the short term, 3-6 months. Don't try to time the market, after you consider the buy/sell costs the small downwards trend in the market will be insignificant.
Can't really see how the Royal Commission will affect housing prices.
I can see how an Interest Rate rise might, or another Recession (ie job losses) or to a lesser extent removing/tightening Negative Gearing laws.
Banks getting a slap on the wrist and maybe one or two mid-high level Executives getting a few token days in prison for stealing hundreds of millions of dollars, isn't going to do very much.There was an article on RP data yesterday which speculated that the interest rates may rise due to the Banking Royal Commission. The reason given was that banks will have to shore up additional reserves, and cost increases due to compliance and oversight expenditure.
Good point…
Banks have lost a "cost free" profit centre (at least for the short term), they'll need to recoup that somehow.
No