Is it the right time to sell Property?

TAN on 08/09/2021 - 07:59
Last edited 08/09/2021 - 10:00

Hi Ozbargain Community,

Hope you are all safe and well during the lockdown period. I would like to request an opinion about selling my investment property either now or later. I bought the property back in 2013 and need money in one or two years time for another investment. In the last few months, prices in NSW have sky rocketed unexpectedly.. From the current market data alarming to sell now instead of waiting another one or two years.

I am expecting your opinions on this and greatly appreciate your time to provide advice.

Financial

Comments

  • Fredfloresjr on 08/09/2021 - 08:11
    +28

    weird flex but ok. Goodluck OP

    • esq on 08/09/2021 - 09:10
      -2

      peculiar boast but allowable. Goodluck OP

  • popsiee on 08/09/2021 - 08:14
    -1

    Hold the RBA's data is better than the Turkey's from here : https://www.afr.com/policy/economy/rba-house-price-model-pre….

    • JimmyF on 08/09/2021 - 08:43

      yeah house prices will go up 25% in the next 2 years after already going up a good 20% during a pandemic. Hmmm but wages are flat? See any issues here?

      So that $1m place jumped to $1.2m, and about to jump to $1.5m, so nearly a 50% rise in 3 years. Yet wages……..

      • popsiee on 08/09/2021 - 09:33
        +1

        I actually think its too conservative hehe :)
        At some point overseas demand will come flooding in .

        • JimmyF on 08/09/2021 - 10:10
          +5

          At some point overseas demand will come flooding in .

          Well you better hope they bring loads of cash with them to afford that $2m dogbox.

          • popsiee on 08/09/2021 - 10:14
            +2

            @JimmyF: Yeah it will be crazy just like that plane full of cash that the US sent to Iran :)

          • Davgilmr on 09/09/2021 - 10:44

            @JimmyF: They need as low as 5% these days, isn't that the reason of this bloating.. well under 100k for a lot of migrants who won't touch 1m for the first property if cs prevails, is achievable, I think.

            • JimmyF on 09/09/2021 - 13:46

              @Davgilmr: Its not just about just getting the 5% deposit together, you still need to be able to service the loan…… So lets say a 5% deposit on a $1.5m property, means a $75k deposit + stamps upfront, leaving a $1,425,000 loan. Think that loan is serviceable without wage growth by the 'average' earners in this country?

  • SF3 on 08/09/2021 - 08:23
    +5

    Sometimes you win and sometimes you don't.

    Flip a coin.

  • bemybubble on 08/09/2021 - 08:34
    +6

    Hi Op -

    Genuine question: Sell, then do what with the money?

  • JimmyF on 08/09/2021 - 08:40

    I think this is the best time to sell
    I am just expecting 1.5million

    Ok then, sell.. Put it on the market, if you get offers over $1.5m and you're happy, then sell.

  • Frankensnore on 08/09/2021 - 08:41

    HODL!!!

    On serious note, any investment is a matter of moving to another investment. If you sell and say put into cash, then that's just stupid. If you put into shares, then maybe it's smarter, depends. Bonds maybe more similar. So it's just comparing the possible performance between two investments, that's all.

    I would hold because a house, with land, is limited. But maybe you have an option to invest in a high performing low risk business or something.

    Disclaimer : This is not a financial advice.

    • TAN on 08/09/2021 - 08:57
      +11

      Thanks for your time, I am not going to keep as cash. I have my living property with a small loan. Pay off the total loan of the property value 1.2million and use the balance to invest in my long time dream in Bollywood Cinema production ( please do not give negative comment on this investments as I have been receiving negative comments about to invest in cinema. Since I have a 1.20 million valued paid off property I would not worry even If I lose all of my investment in cinema. My purpose of all these savings are ( 1 million) in the last 17 years living in Australia is for my cinema dream and every one against to it except my wife. ) My passion is cinema but regretfully working in the accounting and finance. Learnt A to Z of the cinema in the last 10 years and successfully produced some budget ones already, Moving safely towards to my dream

      • esq on 08/09/2021 - 09:12
        +5

        I support you and your cinema dreams, and genuinely wish you good luck in that venture.

        • Lunarboogie on 08/09/2021 - 11:02
          +3

          Username checks out (for non Persian, Urdu or Hindi speakers, esq means love).

      • Quantumcat on 08/09/2021 - 09:23
        +1

        I know you don't want negative comments but cinema is dying. It would be a move like Stan's dad buying the local Blockbuster store in that episode of South Park.

        • SF3 on 08/09/2021 - 09:31

          Haven't watch that episode, you remindered me :)

        • afoveht on 08/09/2021 - 09:51
          +2

          I have a good friend who currently only does shorts and ad work but is now wanting to do same as OP after being encouraged by a friend who did pretty much what OP did. Sold everything, had wife's support, moved out of the city, used the money to fund a feature. Worked out ok for him, was bought by Netflix, now working on his next. So I think there are still opportunities if you know what your are doing and are good at it.

        • Frankensnore on 08/09/2021 - 10:15

          If you are young and dating, restaurant and cinema is a must.

          The alternative of watching Stan in your mums couch is a no no.

      • [Deactivated] on 08/09/2021 - 09:23
        +1

        @TAN Are those budgets films free to watch on internet?

        • TAN on 08/09/2021 - 10:17

          Sorry , Not available at this time

      • tallkid123 on 08/09/2021 - 09:27
        -2

        I won't give negative comments on your investments but my God, Bollywood is absolutely terrible.

        IT IS BAD.

        I was an expat in Pakistan for 3 years and saw enough of that garbage to last a lifetime.

        Colourism, sexism, unrealistic expectations, ridiculous family drama, nonsensical storylines. I welcomed the dancing scenes because it gave my brain a break. I even attended a local cinema in India and watched it there too.

        I still remember dying from the cringe inside…

        • tallkid123 on 08/09/2021 - 15:05

          Downvoters, you have legitimately terrible taste.

      • terlalu on 08/09/2021 - 11:46
        -4

        Just your luck!
        I am a successful Bollywood Cinema producer, looking for some financing for a new film.
        Now, I only play in the big leagues, and only deal with investments over $1m. I don't work with small frys - but you sound like just the right guy !
        There may even be a small cameo acting role for you with the right investment!
        Give me a call once you've sold your place and secured the $$$$.

      • Mugsy on 09/09/2021 - 08:08

        OP…

        Firstly, I support people pursuing dreams. It's what keeps us going and we tend to do our best when we pursue something we love.

        But I also believe people need to be realistic about things… the film industry is struggling globally during COVID-19. Do you have a plausible plan on how counteract this?

        If not, I'd hold onto that property a bit longer, sell later when you'll likely have more money to work with when film making has got less hurdles that you're able to overcome.

        If you do and you're confident you've done your due diligence extremely thoroughly, I wish you good luck and much joy in your endeavours.

  • Donaldhump on 08/09/2021 - 08:43
    +8

    Cool story bro, where is the difficulty in coming up with a plan

    Ozbargain needs a mandatory induction video on advise vs advice

    • Muzeeb on 08/09/2021 - 09:10
      +1

      Someone has already gone to the trouble

      • TAN on 08/09/2021 - 09:14
        +1

        Got it and corrected

        • Muzeeb on 08/09/2021 - 09:16
          -1

          I expect you opinion and advise on this and appreciate your time to give some advice,

          Almost. Great try for a second language my friend.

          I look forward to your opinion and advice on this and appreciate your time.

        • Donaldhump on 08/09/2021 - 09:16

          nice one, all the best

    • MrThing on 08/09/2021 - 09:16

      add to that.

      their vs there

      where vs were

      your vs you're

      etc etc

  • Big Lenny on 08/09/2021 - 08:55
    -4

    very difficult to read your post

    learn how to use paragraphs and go over for grammatical errors

    • TAN on 08/09/2021 - 09:05

      Yes agree , It is my weakness and couldn't improved it in the last 17 years , Studied and worked over 10years in a different language and mostly concentrated on cinema

      • Muzeeb on 08/09/2021 - 09:14

        Yes, I agree. It is my weakness and I have not improved in the last 17 years. I studied and worked for over 10 years in a different language and mainly concentrated on cinema.

        FTFY

        • mlbrooke on 09/09/2021 - 10:21

          Or even "I agree, it is my weakness and it hasn't improved in 17 years. I have studied and worked for over 10 years in a different language, mainly concentrating on Cinema."

          Why correct someone? I understand what he is saying as do you :-)

    • Quantumcat on 08/09/2021 - 09:25

      Do you know another language other than English? And if so are you as good at it as OP is in English?

      • Big Lenny on 08/09/2021 - 09:31
        -6

        yes I'm proficient in another language other than English. You got anything else you want to come at me with?

        • Quantumcat on 08/09/2021 - 09:36
          +5

          You were still rude. There may have been mistakes but OP was still perfectly legible and easy to understand what they meant.

        • tik tok on 09/09/2021 - 11:41

          yes I'm proficient in another language other than English

          Succinctly shows your grasp on the language.

    • Porker on 08/09/2021 - 09:58
      +3

      Yes, it's difficult to read, but presumably the OP can write/speak in fluently in their native tongue.

      I wouldn't mind being in a situation where I could speak/write, even in a 'broken' manner, another or several other languages. So Kudos to the OP for at least being able to communicate, albeit in manner that requires patience from the reader. I did have to re-read sections of the original post.

  • JIMB0 on 08/09/2021 - 09:01

    Sounds like a good plot for a movie.

    • TAN on 08/09/2021 - 09:08
      -1

      Is it? I have much better plots already and waiting until secured financially .

  • MrThing on 08/09/2021 - 09:14
    -1

    I think OPs biggest drama is his english and grammar skills and not whether he needs to sell.

    cool story OP

  • tallkid123 on 08/09/2021 - 09:20
    +1

    I just read this post as

    "Blah blah. I bought a property in 2013 and it went up. Blah blah. Neighbours didn't want to sell their place together with mine so I'll go alone. Blah blah. What do I do now?"

    I expect you opinion and advise on this and appreciate your time to give some advise,

    Well, you're either going to sell or hold? In your case, it's

    I have decided to go ahead without the neighbors land and planning to sell

    (What's the point of this post?)

  • kolorijo on 08/09/2021 - 09:28

    The right time is subjective. Ask yourself whether it is the right time to sell then you'll find the answer.

  • dust on 08/09/2021 - 09:42

    Waiting for a deal on crystal balls before I can answer you.

  • onetwothreefour on 08/09/2021 - 09:42
    +1

    The grammar, spelling and punctuation nazis are awake early this morning.

  • pformag on 08/09/2021 - 10:09
    -1

    Sell, then get some writing lessons.

  • tomleonhart on 08/09/2021 - 10:49

    It is never a good idea to sell your property. Unless you need the money for something else. Only you can work out what that something else is. We can't help you :)

  • TheMindsetTraveller on 08/09/2021 - 11:27

    Since you do not need the funds for another 12-24 months, I would suggest holding off selling especially if the investment property is located in the greater Sydney or a popular coastal area of NSW where prices have gone bonkers. Plus there really isn't any indication of that slowing down significantly. Also bear in mind, the possibility of capital gains tax, so if you sold the property in July 2022 (you may be able to delay any CGT if applicable to the 2022/23 tax year).

  • netjock on 08/09/2021 - 12:04

    If it is IP and you don't need to live in it, you find a price you like then sell it. Just don't look back: it might go up another 20% (or it could go down 20%)

  • KaTst3R on 08/09/2021 - 12:07
    +1

    Prices have gone up but not for all places and all house types.

    I know some friends who invested in apartments around 2015 have had their valuation slashed. It really depends on what and where.

  • star-ggg on 08/09/2021 - 12:53
    +1

    If you only plan to require the investment funds in 2 years time, what do you plan to do with the money in the meantime? There is a big difference between 20%YoY growth and 0%YoY, so while property price growth might slow does not necessarily mean they will start having negative returns. It is very unlikely we'll see any negative property price returns as long as there is no clear target for RBA to start raising rates.

  • rektrading on 08/09/2021 - 13:26

    The crisis the world is in right now has provided investors with the greatest opportunity to make money since the GFC. Investors should take advantage of black swan opportunities because they don't come around often.

    Buyers have access to cheap fiat and are buying every asset they can get their hands to get rid of fiat. The best time to sell an asset is when there are more desperate buyers on the market than sellers.

    • OrangeBJ on 10/09/2021 - 01:17

      The best time to sell an asset is when there are more desperate buyers on the market than sellers.

      Is it now?

  • Boogerman on 09/09/2021 - 07:26

    Only sell when you absolutely need cash. Borrow against the asset

  • HeWhoKnows on 09/09/2021 - 08:03

    During the lock down dismal forecasts were made about property dropping 10% to 30% and this from banks.
    Well that never happened as we all know.
    Now they are forecasting 20% increase in property.
    So much for property forecasts.

    Property has a long history of rising over the long term
    These low interest rates has made the property market very robust and money is searching for somewhere with a reasonable return whilst easy money makes it easy to borrow whatever you need to make it happen.

    The big question is "When will this easy money and low interest rate environment end?"

    Most forecasters including the RBA are saying at least until 2024.
    However if you look at Japans economic history, low interest rates can last a very long time, but not so for rising property prices.

    Anyway to answer OP's question….

    Based on what we know now you can expect property prices to continue rising though at some stage they will hit a roof when affordability starts to become a problem.

    Answer: Hold on for the next 2 years

  • BigBirdy on 09/09/2021 - 08:20

    I can’t advise you about selling property, the current market no longer follows “supply & demand” principles and hence lacks predictability see Alan Kohler on housing, but I love your passion for Bollywood production. You only get one chance of life, follow your passion, but don’t let it control your ability to make sensible decisions about your family’s financial security

  • Peck on 10/09/2021 - 00:53

    I am too conservative, and would cash in my chips. But I have been expecting the peak for several years now. It seems that central banks are cutting back the stimulus, but just a little. The money that they 'printed' by buying bonds did nothing to stimulate the economy, other than to throw fuel onto the real estate market, and the share market. For years we have been hearing how the Aussies are in so much property debt by comparison to other countries. I agree with Alan Kohler, in that I have NFI.

  • Peck on 10/09/2021 - 13:08

    What about an Each-way bet? Sell and keep a portion in cash for Bollywood. Locking in the value.
    And roll back a portion into real estate? Maybe into a managed property fund. I assume that you can withdraw cash from such a fund as needed at the going value.

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