Quote:
Originally Posted by ab1963
we live in Sydney and are looking to sell to make a move to Tasmania so we have had our house valued recently and when she gave us the figure i nearly passed out ,it was valued at nearly 7 times what we paid for it 20yrs ago so it looks like retirement is coming earlier than i thought ,you can buy in Tassie a similar home for a third of the price
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Before you get too excited may I suggest be careful taking an agents appraisal. Some are incompetent, some lie and some are desparate for a listing and pick a happy figure out of thin air.
I was in the business and say I am not being dramatic.
If you want to go to Tassie try and buy before you sell, I mean years before.
Never buy expecting the proceeds of the sale will cover the purchase.
I have witnessed many disasters where folk have purchased and I have not been able to sell their old home for what they expected or indeed get it sold in time forcing them into bridging finance.
However if you can buy a house in addition to your home and rent it until you need it you can enjoy the further(hopefully) capital gain on your Sydney home.
While renting the new place any improvements or refurbishement may be tax deductible.. And dont forget you can take advantage of negative gearing opportunity.
Further make sure things are as cheap as you expect. I had a recent purchase and had to go up 100k on where I thought the market was... The market was moving and I could not see it... And given my experience you would think I should have seen it moving.
When in the business prices would jump 25% within a matter of weeks and we would not see it until it was over.
Once prices were around $150k. Things began to move and we just thought we were selling well. We listed one for auction thinking it would stop in its tracks at$155k but at the auction 6 weeks later it sold $237,500... As I said it jumped so fast... It was after this that we started to notice it was happening all over.
I predict next spring another take off... Maybe.. But things used to go slack during winter, as people prepare to sell in spring, and we get a fall of in supply. Demand builds up.
Also up to elections once saw a fall off in listings.. So maybe after elections moving into spring things could jump again.
I have been in Sydney looking after my father where we shop we are the last Australians.
It is so busy money money money.
I was at the bank today, next to me change this 10k of fifties to 100 s, then next banked 5k, next 10k of 20s to 100 s. The other day sitting next to me lady pulled out 20 k (by my eye which is good with cash) and another guy banking 5k cash.
Pity my legs are crook.
My point is there is a lot going on that tells me we may see things hot up more.
I have always said it is the top of the market that pulls the bottom up. Not the way we would like it but thats my observation.
Even the place I grabbed recently since getting it I cant see anything as good and listings are drying up such that I recon I could relist in spring up 100k...not that I will cause I would have to find something no longer available at the price.
I showed the manager photos of the property her eyes lit up when I told her the price and the number of acres... Could I have started them buying in this area?
I heard about 13 or 14 owners selling for high rise somewhere here in Sydney bht did not take notice to give you details but they got 7 mill each.
All I am saying the bubble thing is always with us but its different to anything I have seen and my experience covers fifty years.
Alex