Still somewhat risky though. I'd have thought in a stagnant/falling market that selling before buying would be the best strategy. Buying before selling works best in a rising market I'd expect.
In Trojan's case he has decided the wait - the demand is still there, but not realised yet.
Does this mean that you count my demand for a house by my decision to wait? How do you quantify someone who chooses to live at home? Pent up demand? Even if they are not actively wanting to buy? Surely demand should be someone actively participating or trying to participate in the market? As soon as someone chooses, as in this case, to wait, their demand cannot be calculated or added to the equation?
I know that in any case, you will have an argument in your mind that "everyone wants to buy a house so it is either demand or pent up demand" so no specific need to reply.
Sydney is pretty flat at the moment, but it's still the strongest of all the cities.
When interest rates drop later in the year (I expect October), then Sydney will take off again.
Due to the fact that interest rates are no longer expected to rise, I think we'll see a rising Sydney median for Q3 and Q4.
I agree with you that Sydney is flat but it is the strongest out of all the capital cities. I don't know if they will take off soon but i can't see it crashing either.
I agree with Shadow (with condition that UE is stable). However, Trojan, your best decision whether to sell/hold is the one that you and your family are comfortable with, regardless of the financial issue.
And sorry for the auction result, but based on the highest bidder, at least your house had increased by more than 40%. Most of Sydney Inner West suburbs with Median price of around $600K (2006) had increased by more than 1/3 (6/2011) that is $800K+.
I find it astounding that the highest bid was well in excess of any bear's guess, and yet, they call it proof of a dead market simply because it passed in.
It just shows how out of touch with the market the bulls are. Good luck with the final negotiations, Trojan. As the block showed us, just because it doesn't sell in the heat of the moment, doesn't mean you won't get above your reserve price for it eventually.
Property speculation is a type of gambling... But everyone knows that in gambling, the house always wins in the end.
I find it astounding that the highest bid was well in excess of any bear's guess, and yet, they call it proof of a dead market simply because it passed in.
It just shows how out of touch with the market the bulls are. Good luck with the final negotiations, Trojan. As the block showed us, just because it doesn't sell in the heat of the moment, doesn't mean you won't get above your reserve price for it eventually.
I say good luck to you too... but ....
The house is worth only what someone is willing to pay for it.
Bulls pat themselves on the back for riding the back of rising property prices but if you are upgrading it just ends up costing you more in price differential and stamp duty. Downsizing is where it counts for price differential working your favour, but stamp duty still gets you. In Trojan's case, I expect he would be much better off transfer expense-wise had the market been flat or gone down since his original purchase.
Still somewhat risky though. I'd have thought in a stagnant/falling market that selling before buying would be the best strategy. Buying before selling works best in a rising market I'd expect.
Just as I had people telling me the market was going down vs the market was going up, I also had people telling me the merits of buying first vs the merits of selling first.
Risks are different but considering we could afford both mortgages (with the tenants help) we decided to go down the buy first route. Once again, only time will tell whether it was the right move.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
I agree with Shadow (with condition that UE is stable). However, Trojan, your best decision whether to sell/hold is the one that you and your family are comfortable with, regardless of the financial issue.
And sorry for the auction result, but based on the highest bidder, at least your house had increased by more than 40%. Most of Sydney Inner West suburbs with Median price of around $600K (2006) had increased by more than 1/3 (6/2011) that is $800K+.
Thanks sentsie.
No need to be sorry for the auction result. I do agree at least we know as of yesterday the house was worth around $850k but we were too "greedy" and decided not to sell it. I think the crunch came when I asked my wife would she pay $900k for this house (assuming our family wasn't getting any bigger) and she said yes. Which in my books means it is worth $900k to us and so we are better off keeping it than sell it for $850k
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
I find it astounding that the highest bid was well in excess of any bear's guess, and yet, they call it proof of a dead market simply because it passed in.
It just shows how out of touch with the market the bulls are. Good luck with the final negotiations, Trojan. As the block showed us, just because it doesn't sell in the heat of the moment, doesn't mean you won't get above your reserve price for it eventually.
Thanks sunder. Agent has said he will be contacting all the people who showed interest. He said some people who saw it in the last 2 weeks didn't have their finances ready so couldn't bid at the auction. Whether that is truthful or not, we aren't holding our breath. We already told the agent he has 2 more weeks before we pull the property off the market.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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