Should I sell my house now Reddit

Ok so we've been debating and honestly not too sure with what's going to happen with the market once rates rise. If you were thinking of selling is now the best time to sell and then wait a bit before buying. Or do you think the market won't drop as much as predicted?

level 1

I had a friend who sold in Melbourne at the start of covid - a few weeks into the initial panic.

He thought he got a great price. Which he did for the time.

But now looking back, he said he should’ve waiting and enjoyed a 20/30% increase in value over the 18-24 months

We all make our best decisions with the data we have. No one can predict the future - no matter how obvious it may seem in the present.

The crazy price rises during covid were case in point.

level 2

Crazy to think a global pandemic could do anything to hooms. What an idiot... should know that hooms only go up

In all seriousness, selling your PPOR to try and time the market is a shockingly terrible idea - even if you're beyond certain the market is just about to tank.

level 2

Yeh I feel bad for your friend. I'd imagine he would have told everyone how happy he was to sell before the a so called covid housing crash only to now have egg on his face. The major banks were predicting 30 percent declines. I believe they were making these claims to get government stimulus The RBA was saying they were only going to raise interest rates in 2024 but that may be a big lie. As you say it is up to us to make decisions with the data we have rather than to fully rely on others

level 2

We all make our best decisions with the data we have.

Spot on. My MIL listed her deceased mother's 3bd unit in the eastern suburbs of Melbourne the same week the shit hit the fan in the markets.

Ended up getting the lower end of the range but if she had of kept it 1 more year she might have gotten another 100-150k.

No one knew they were going to bounce back like they did. After the GFC it took a couple of years for prices to bounce back and then they roared before slumping again. Who knew.

level 2

This is such a great comment. We bought a place at the start of covid during the panic in a low quality housing, high rent demand state and it went up 38%.

level 1

If your sell just to buy again. You lose close to 10% of the value of your home in fees. That’s guaranteed.

You will also be searching for a rental during a genuine housing crisis. Which will be tough.

To transact in the housing market now you would need a really good reason.

level 2

Agreed -- the costs add up eg. 2% real estate fees + marketing, stamp duty on new purchase, loan and legal fees.

level 1

Who knows? Selling could be a great decision, or it could be a disasterous decision. But I think it's the type of decision you could only make if with 100% conviction and you understand why you're doing it. I certainly wouldn't do it because someone on r/ausfinance said it was a good idea.

level 2

Agreed, although assuming you have a healthy LMI and reasonable servicing holding a ppor will guarantee you have somewhere to live. There is no guarantee property will rise, fall or stagnate.

level 1

Timing the market is a mugs game.

level 1

This depends much more on you individual circumstances. We sold our house in 2019, which from the outside looks like it was a terrible idea because if we had waited we could have gotten heaps more for it, but realistically it was absolutely, 100% the correct financial decision for us at the time.

level 1

Nobody knows for sure.

You have to make an educated guess based on the information available now and your own particular circumstance.

level 2

Truly... nobody could have predicted this

level 1

Unless you know for a fact that the area you’re living in is going to crash soon, like the end of a mining boom, I’d hold. As someone mentioned, whatever profits you make will be negated by the stamp duty.

If you’re planning to upgrade your house, you could sell now and buy in 6-12 months, I don’t think the market will go higher, but you will also have some sunk costs like double moves, rental etc

level 1

Do it!

Na don’t do it.

Although….

Hope this helps.

level 1

Unless you think that you won’t be able to afford your repayments to the point that you are going to lose everything, why would you sell? Are you trying to make a quick buck by selling high buy low because that would be pretty dumb with the housing market.

level 2

A good market to sell maybe what someone requires to move into a better location.

Maybe someone had been sitting on that property in a dud location for long and now they can get it without being hurt too bad and can move into that dream suburb, better school location etc etc etc.

A quick buck is probably not the only reason people sell.

level 2

Old mate knows what he is talking about. Listen to old mate.

level 2

I agree with this. And what you may save in payments you’ll probably just replace with Stamp Duty on the new place.

level 1

Your house? As in your primary residence?

There's some merit in selling an investment property if you can invest that money elsewhere for a higher return, but even that only makes sense if you're 'return' on your property is just from housing price increases - if you've paid off much of your loan, generated rent still makes a good return.

If it's your primary residence, a definite no.