To sell or not to sell the house?

Submitted: Thursday, May 14, 2009 at 08:45
ThreadID: 68806 Views:3922 Replies:21 FollowUps:17
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Hi everyone,

Hubby and I are in the last couple of years of our working lives and are chomping at the bit to hit the road, but are finding it hard to make the decision about the house and whether to sell it or not?
We like the idea of being footloose and fancy free with no responsibilities except our own wellbeing, but having said that we also like the idea of having a 'base' to come home to should anything force us off the road.
Of course there's the option of renting the house out to have an income of sorts ( we are'nt self funded so the extra income would be very helpful)...but having someone in my house just does'nt sit well with me. I think I'd prefer to sell and buy an investment property and rent that out?
So I was wondering if there are members here who have sold up and what their thoughts and suggestions might be? Both good and bad.
Looking forward to hearing from you...

Cheers,

Lynnie
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Reply By: Cruiser .- Thursday, May 14, 2009 at 09:08

Thursday, May 14, 2009 at 09:08
Lynnie,

We are going through the same dilema at the moment.

Our house is on the market and at this stage there isnt much happening regarding a sale so we are trying to decide whether to continue with trying to sell or just rent and go.

Its a hard decision to make as we also like the idea of having somewhere to come home to.

At this stage we will keep the For Sale sign out the front but sooner or later we will have to make a decision of somekind if we dont sell soon.

All the best with your decision.

Cheers,

Cruiser
AnswerID: 364769

Reply By: DIO - Thursday, May 14, 2009 at 09:08

Thursday, May 14, 2009 at 09:08
Not aware of your ages or financial circumstances however for the purpose of qualifying for any Centre Link benefit(s), Aged Pension etc, your home is NOT assessed as an assett. If you sell it then proceeds from sale will also create problems re income etc for C.L. Suggest you make appointment and speak to Financial Advisor at Centre Link. No cost, no obligation etc.
AnswerID: 364770

Follow Up By: Madfisher - Thursday, May 14, 2009 at 20:31

Thursday, May 14, 2009 at 20:31
Thats the best advice you have ever given Dio, good on you
Cheers Pete
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Reply By: Member - Bruce T (SA) - Thursday, May 14, 2009 at 09:09

Thursday, May 14, 2009 at 09:09
We have friends who have done that and are having a wonderful time. The only downside for them is having somewhere to park their van when they take part in camping 4WD trips like we are doing in June.

They sold their house and are building an investment property. They chose a place that was near a hospital, university, shopping and schools so that they knew that they would have a reliable rental market.

The other thing is why not rent out your house and sell it and buy something else when you return.

Cheers,
Bruce and Di
AnswerID: 364771

Reply By: Member - BUNDY BOY (WA) - Thursday, May 14, 2009 at 09:15

Thursday, May 14, 2009 at 09:15
Lynnie
my thought ...sell big house and buy a smaller unit /duplex...as a base is always good to have ,if the need arises. short term lease .with stipulations ,on age eg: no young yahoos..that should give you some extra cash and .the feeling of still having a home base.......of sorts.....or go the whole hog .get a large off-road van with all the bells n whistles....$80,000 or a swagman style motor home.trailer for the 4x4....and away u go...home base goes with you

Food for thought........Bundy
AnswerID: 364773

Follow Up By: Member - Uncle (NSW) - Thursday, May 14, 2009 at 10:45

Thursday, May 14, 2009 at 10:45
We met some people while on the road last year in WA , who have done exactly what you first mentioned Bundy. They sold the "big" home, and have now settled their belongings into a smaller unit, which is the home base.
They have also downsized their van into a Windsor Rapid off roader and they are much happier and can also get into tighter gold areas now, when prospecting, where they could not get into before.

cheers Unc
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Reply By: Member - Lewis K (QLD) - Thursday, May 14, 2009 at 09:21

Thursday, May 14, 2009 at 09:21
Gday Lynnie,

The two things that are fact. 1. The Australian population is going to continue to increase. 2. God is not going to create any more land. The outcome of this is that over a long enough period, housing prices must rise. The effect of this on selling and being fancy free, and would we all not like to be just like that, is that you have a very real potential of not being able to buy a property when you decide to stop the roving life.

You have suggested that you don't want anyone living in your house and would prefer to sell and buy a rental property. One would assume that when you settle, you will sell the rental property to build the new home. If you have a think about the costs involved here we are starting to talk many 10's of thousands of dollars. Agents fees x 2, costs of new mortgage x 2, stamp duty etc.

Would it not be much easier to simply rent the current house and sell it when you finally decide to stop and to build a new home. The only downside to this is that you will have to pay capital gains on the % of gain on the family home while it was rented. If you return within (I think it is) 6 years, stay for 3 months and then leave again, even this can be negated.

One would have to suggest that a sit down with a good financial adviser or accountant that you trust would be the way to go. Take out the emotion of this is my home to the real requirement here of how do I maximize my free and easy lifestyle.

Hope this helps in the difficult task of making a decision.

Lewis
AnswerID: 364774

Follow Up By: tim_c - Thursday, May 14, 2009 at 12:11

Thursday, May 14, 2009 at 12:11
Yes, that's true - you can rent out your home (ie. not an investment property) for up to 6 years without having to pay Capital Gains tax (but You'll have to check up whether 3months is long enough to live in it to get another 6 years free of CGT - I haven't heard this one before).

Agents fees and stamp duty will increase your costs very significantly - consider selling belongings you don't need, putting the rest in storage, and rent the property out (with a good property manager - preferably one that is locally based rather than a franchise). If you rent the property on a month-by-month basis, you can move back in within a month if you want to.
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Follow Up By: fisho64 - Friday, May 15, 2009 at 00:46

Friday, May 15, 2009 at 00:46
a good figure to use is 10% to buy and sell a house

ie to sell a $350000 house and buy another would cost you roughly $35K
agent
stamp duty
settlement and transfers
mortgage
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Reply By: Willem - Thursday, May 14, 2009 at 09:21

Thursday, May 14, 2009 at 09:21
Lynnie

If you sell the house then you HAVE to make sure that you INVEST all of that money for the future.

Footloose and fancy free is a nice dream but not very practical.

We sold up before our equity had built up to a reasonable level and then rented for a while, then lived in a caravan for 10 years, and then took to the road for a further 5 years.

After being footloose and fancy free for 15 years we got thoroughly sick of it. It was time to buy a house again and settle down but we had no real money. So we scoured the country towns and eventually found a place for under $20,000. We were able to pay cash for the house and then started renovating it, slowly.

Now we are pleased we have a base. We still take off for extended holidays for up to three months but we have that home and the community we live in, to come back to and to belong to.

Hope this makes sense.


Cheers
AnswerID: 364775

Reply By: Member - Bushpig - Thursday, May 14, 2009 at 09:24

Thursday, May 14, 2009 at 09:24
Hi Linnie

We have just sold our home but we did not own it as bank had a share. We had enough to but a big off road van and truck.

As one of the other replies indicated you need to get a financial advisor to help you make a decision. Our van is now our official home and as such is not assessed by Centrelink.

It is a bit scary not having a home base but our plan B if we ar forced off the road is to rent, sell the rig and buy a small duplex etc.

So we did it and although filled with a little trepidation we are looking forward to the freedom that the unknown future brings.
Settlement on our house is now 4 weeks away and then we spend two weeks on our sons floor until we pickup our 23ft van from Qld. Already have 4 events to go to prior to Xmas so even thu we are free we look to be very busy. Can't wait

Cheers Jack & Linda
AnswerID: 364777

Reply By: Saharaman (aka Geepeem) - Thursday, May 14, 2009 at 09:56

Thursday, May 14, 2009 at 09:56
HI Lynnie,

If you search this forum for this topic you will see I have, in the past, been an avid advocate of keeping the family home at all costs whilst travelling. I have always held the view that real estate is a solid investment and allows one to travel and come home to a home to live in.
However we currently live in unprecedented financial times and the waters ahead are unchartered. Some of the most knowledeable real estate researchers are saying house prices will most likely fall further in the short term (next 2 years or so). here is just 2 quotes from recent newspaper articles:

"FIRST home buyers are leaping aboard a sinking ship, with house prices set to fall about 20 per cent in the next two years, an Australian National University economist says.
Professor Quentin Grafton said house prices could not continue to grow at a faster rate than incomes and consumer prices.
» Property bubble ’set to burst’ - The Age, 1st May 2009"

AND.

"The Sydney Morning Herald reports :
THE Australian housing market is facing the prospect of a “perfect storm” of financial pressures - including high mortgage debt, overvalued homes and rising unemployment - in which prices could eventually fall by as much as 30 per cent, investors have been warned."
» First-home buyers in the eye of a storm - The Sydney Morning Herald, 18th March 2009

In SEQ the first home buyers grant has artificially propped up prices for homes less than about $400,000. Above that there has already been a fall of 10 to 15% with most likely more to come.( I have a friend on Gold Coast who has taken a $600,000 loss on a multimillion dollar home - a fall of over 20% in the last 18 months). My point is that once the demand for lower price homes dries up when the FHOG drops back to only $7000 at the end of this year - prices in this category will most likely drop. As the newspaper article above articulates it is sad to see young people rushing in to buy a home at current inflated prices only to see their purchase most likely fall in value in the short term.

If you take the views of the many professional real estate advisors (ignore real estate agents as they can only ever see real estate prices going up), that prices could fall across the board by another 20 to 30 % in the next 2 years, it makes sense to sell now, invest the money wisely and it maybe that in two years time after your trip you can buy a far better home than you have now.
Of course there are risks in all of this - as stated we are in unchartered waters but two years ago many were saying house prices would not fall much either - in some states they have fallen a staggering 50 to 60% in the past 2 years. Unbelievable.
But the notion that real estate prices never fall is a phurphy - they do and they are falling and probably about to fall a lot further. It is true, however, that in the long term real estate generally will rise in value.
Just another aspect for your consideration.
Good luck in whatever you decide,
Cheers
GPM


AnswerID: 364786

Follow Up By: Saharaman (aka Geepeem) - Thursday, May 14, 2009 at 10:01

Thursday, May 14, 2009 at 10:01
Correction - in my last paragraph it should read
"saying USA house prices" ,not "saying house prices"
and
"some USA states", not "some states"
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Follow Up By: Rod W - Friday, May 15, 2009 at 09:02

Friday, May 15, 2009 at 09:02
Hey Saharaman, in your profile the pictures of the excavator and the overpass bridge is that for real and where did it happen. it must have been bleep e concrete or the low loader must of been moving.
Cheers Rod W
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Follow Up By: Saharaman (aka Geepeem) - Friday, May 15, 2009 at 10:35

Friday, May 15, 2009 at 10:35
Rod,

As far as I know its real - but it happened in USA I believe, as the traffic seems to be travelling on the RHS of roadway.
I found it hard to believe it could slice into the concrete like that as well.
An excavator hit an overpass on the Bruce Highway near us some years ago and all it did was shift the concrete girder a few cms and a bit of concrete rubble from edge.
But the photos do not appear to be fabricated - but I will stand corrected if that can be established.

Cheers
GPM
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Reply By: Lynnie - Thursday, May 14, 2009 at 10:44

Thursday, May 14, 2009 at 10:44
Wow I am flabergasted at the quick response and the wonderful advice that you have all given us.

Your help is very much appreciated - I believe a trip to a Financial Adviser is probably the way to go.

Lewis is right about the costs of selling/buying/selling doubling, but as a lot of our funds needed for the trip are tied up in our house we will have to give it a great deal of consideration before making that decision.
Just uping stakes and going isn't as easy as one might think is it?

Hubby is a very carefu, logical & methodical person...unlike myself who tends to rush in like a bull at a gate, so between the two of us we will eventually get there....there being 'everywhere'. LOL

Many thanks once again for your input....nothing like fresh ideas to start you thinking.

Cheers
AnswerID: 364800

Follow Up By: Member - DOZER- Thursday, May 14, 2009 at 12:34

Thursday, May 14, 2009 at 12:34
Do u have kids? this could change your possibilities.....if for instance you could sell up and they could buy from some of your proceeds...or even allow you to use their address as a base for mail/bills, etc....the possibility of them being able to afford a house now as opposed to later when whats left is devided up....
Whatever you decide, dont do anything that will effect you qualifying for part or whole pension, as it comes with that nice card that will be worth the world to you if you need to see doctors or buy medication.
Andrew
b4 you bag me out, walk a mile in my shoes, then your a mile away and have my shoes :)

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Follow Up By: Member - Julie P (VIC) - Monday, May 18, 2009 at 09:46

Monday, May 18, 2009 at 09:46
Hi Lynnie - you and your hubby sound just like us - we are at a bit of a crossroad a the moment - would love to just "pick up and go" - but - sell house? rent house? do we have enough money to get us out of trouble if needed? read somewhere the other day that the majority of so called baby boomers would have the maximum of about $150,000 in super - these are the ones who just worked at ordinary jobs in private enterprise - hubby is boilermaker-worked in factory all his working life - I am working in shop part time at moment - and have only worked part time for last 5 - 6 years . We don't have quite that much, me having taken mine to pay out car loan when I left full time work, and hubby having taken some of his years ago to pay out our first house.
Hubby isn't one to trust "financial advisers", our house is fully owned thanks to a lot of hard work, and it is the biggest asset we have - my thought is to sell, buy either a smallish house, or even a block of land in Qld near our daughter, and hit the road - but hubby is one of those "glass half empty" types - always sees the bad in anything - where I am an eternal optimist - she'll be right mate - just do it.
Oh, well, we will keep on discussing, I might take the advise from in here and go to financial adviser at Centrelink, see what they have to say -
Good luck with whatever you decide -
jules
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Reply By: wild dog - Thursday, May 14, 2009 at 10:58

Thursday, May 14, 2009 at 10:58
Several times in the last 15 years we've just shut the house up and gone on working trips for up to 6 months. If you live in a good neighbourhood your nearest neighbours are the best positioned to keep an eye on the property.
With the rural properties we had it was important to have a clear area well back from the house and it doesn't cost a lot to get a contractor to mow the grass.
After working in a residential complex on the GC for a couple of years I've come to the conclusion that renting my house would be the absolute last resort. Tennants that appear OK can be a nightmare and finish up costing more than the bit of rent you'll get.
As for selling and buying another property, just the fees and charges are enough to make you think twice, and after seeing how property managers and body corps operate that wouldn't even come on the radar for me.
I can only comment on what I saw on the GC, maybe other places and states are better.
AnswerID: 364804

Reply By: stevesub - Thursday, May 14, 2009 at 11:42

Thursday, May 14, 2009 at 11:42
NEVER be without a place to call home. You can leave it empty, (not desirable), put house sitters in (Short term fix) or rent it. There WILL be damage done by renters but you just have to accept that as part of life - and remember that the rent is very useful. If you sell it and use the money, you are then in the van or rented accommodation for the rest of your life unless you can get a deposit/mortgage together again in the future

DO get it professionally managed, do not do it yourself. I know as I have a few rental properties and have been there done that - it is a mistake.

Do talk to a financial adviser with the view of keeping the house. We rented ours out for 2 1/2 years when we were nomading, the rent was handy, we told the ATO about the rent and paid taxes on it and when we sold the house, we had a small amount of Capital gains Tax to pay. However our latest accountant said that we should not have paid that as that was our home, even though it was rented temporarily - see why you really need an accountant to advise you.

Good Luck and have fun.

Stevesub
AnswerID: 364811

Reply By: Member - Norm C (QLD) - Thursday, May 14, 2009 at 12:21

Thursday, May 14, 2009 at 12:21
Lynnie,
This is a difficult decision and has been discussed on a few threads on EO. A search might get you some more info and views.
There is no ‘one size fits all as all our circumstances are different.
We travelled for about 6 months a year for 4 years and always had one of the kids to look after the house. The last time, our son and his partner rented out their home and moved into ours for 6 months. Worked for all of us.

We recently decided to become long term travellers and with kids not available, we faced the rent / sell dilemma. After lots of thought, we came up with what we believe is the best option for us and so far, it has worked very well.

With not enough capital readily available to keep the house and set us up the way we wanted (replace CT with good off road van, new vehicle etc), we bit the bullet and took out a mortgage (previously had none) sufficient to cover the shortfall in capital to set up well for travel. We then rented the house out when we hit the road.

There was sufficient time between borrowing the money and renting the house out, so that our accountant assures us the interest on the mortgage is claimable as a tax deduction on the property. The rental we get is sufficient to pay the mortgage, pay the agent, pay the increased insurance, put about $100 a week aside to cover future maintenance and still leaves us a bit over $200 per week as income to supplement our travel expenses.

For us, this is the perfect solution. We still have our home and remain ‘in the market’ so the risk of a dramatic increase in real estate prices when we stop travelling is negated. We have good tenants and a very good agent (essential – speak to a number and select carefully). WE also took out landlords insurance in addition to our hoe insurance.

This solution will not suit everyone, but so far it has been great for us.

Good Luck
Norm C
AnswerID: 364814

Follow Up By: tim_c - Thursday, May 14, 2009 at 12:59

Thursday, May 14, 2009 at 12:59
"the interest on the mortgage is claimable as a tax deduction on the property"

You might want to check up on this Norm. I'm no tax accountant, but the borrowed money was used to buy the rig (not income producing), NOT to buy the income producing house. My understanding is that it is what you actually use the borrowed money for that determines whether you can claim a tax deduction for it or not.
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Follow Up By: Member - Redbakk (WA) - Thursday, May 14, 2009 at 13:56

Thursday, May 14, 2009 at 13:56
"the interest on the mortgage is claimable as a tax deduction on the property"

I think Norm's method is on the money as he has borrowed against the house and then renting the house( not living in it)...the house now being the capital earning part of the deal in connection with the original loan not the rig so to speak....this is the way accountants think which usually sounds wrong to us mere mortals.

This is different than borrowing against the home then staying in the home and buying a rig.

However down the track there may be tax considerations which may have to be satisfied....because that is how the ATO thinks.
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Follow Up By: tim_c - Thursday, May 14, 2009 at 14:55

Thursday, May 14, 2009 at 14:55
I wish you were right Redbakk - I wanted to refinance my home & investment. I wanted the mortgage on the inv. prop. to be the market value of the property and put all equity into the house I lived in so I could maximise the portion of interest that was tax deductible - was told "No, it's what you use the money for rather than where the security is that determines tax deductibility of interest"

See ato.gov.au, go to "individuals" then "Tax Topics A-Z" then "Investments" then "Rental properties - claiming interest expenses". It says:

"You can't claim interest:
* you incur after you start using the rental property for private purposes
* on the portion of the loan you use for private purposes (for example, money you use to purchase a new car or invest in a super fund), or
* on a loan you used to buy a new home if you do not use the new home to produce income."

As I said, I'm no tax accountant/expert, but the second point seems clear - even us to mere mortals - and even gives the example of using the $$$ to buy a new car. Scroll down on that same web-page, the second example shows how to calculate the allowable tax-deduction of the interest.
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Follow Up By: Member - Norm C (QLD) - Thursday, May 14, 2009 at 16:17

Thursday, May 14, 2009 at 16:17
I'm not about to go into full details on my personal finances on a public forum, but we have recently spent a lot of money on renovations.

My accountant IS a tax accountant (I am a qualified accountant too, by the way, but my knowledge on detail is far enough out of date to be pretty worthless). I'm happy to heed her advice on tax issues.

As I said in the original post, all our circumstances are different, so we all have to take our own expert advice and make appropriate decisions that suit our individual circumstances and goals.

Norm C
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Reply By: troopyman - Thursday, May 14, 2009 at 12:30

Thursday, May 14, 2009 at 12:30
DONT SELL THE HOUSE . Rent it out and if anything happens then you have the house .
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Follow Up By: Member - Redbakk (WA) - Thursday, May 14, 2009 at 13:59

Thursday, May 14, 2009 at 13:59
I absolutely agree with troopyman....but that would be my choice NOT necessarily yours....Lynnie......you have to decide.
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Reply By: tim_c - Thursday, May 14, 2009 at 12:55

Thursday, May 14, 2009 at 12:55
Hi Lynnie,

Some of the decisions will depend on where your home is (ie. is there strong rental demand?) and how much (if anything) you still owe on a mortgage.

I would strongly advise against selling up your home to buy a great big rig simply because this is an irreversible decision... the value of your home should generally increase in the long-term but your rig won't - after fresh bread, there isn't much that loses faster than a nice new 4WD, a big caravan and loads of accessories. If all your money is tied up in a nice rig, you may not be able to sell it for enough to buy yourself another home (if you end up needing to).

I would advise against selling your home to buy an investment property simply because you will lose so much in agents fees and stamp duty etc. Having said that, there are speculations that property prices could drop further over the next year or so. If you are prepared to gamble on this, you could sell your home now and buy an investment property (or two) when you think the market has "bottomed" and hope that this will more than cover the losses (stamp duty, agents fees, etc.). Unfortunately, it's impossible to know when the market has "bottomed" - you can only see it in hindsight.

Some more points to ponder:
* If your rent your home, it will be exempt from CGT for up to 6 years (you will pay CGT from day 1 on investment property)
* Eventually your home will not be your home anymore and will have someone else living in it regardless of your decision now
* You can rent on month-by-month basis so you could return within a month (at most) if you needed to
* Some (not all) people reach retirement and then require more frequent health care (certainly not wishing this on you!) - you may be "forced off the road" as you said, and have to return home
* Your home most likely has a lot of money and potential "tied up" in it - too much to just leave it in mothballs.

Many people approaching retirement have property in very desirable locations - you may have lived there in the same house for many years so even if it was "on the fringe" when you purchased, it is probably inner suburbs by now. This means:
* easily rentable at a healthy rate
* rental return will be high compared to the money that you have put into the home
* If you raised your family there, chances are someone else may want to too

I don't want to answer your question - everyone's circumstances and preferences are different - I just want to throw in some things for consideration to help you make your decision. Seeing a financial adviser will also help you to make a better informed decision.

If you want my opinion, I would rent out my current home (my bias probably shows in my comments above!), but I don't know your whole situation. I wish you the best of health and safe travels - you will meet many more people on the road who are travelling just like you're planning to do, some you will meet again and again - I hope you make some great friendships along the way.
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Follow Up By: tim_c - Thursday, May 14, 2009 at 13:02

Thursday, May 14, 2009 at 13:02
Oh, forgot to mention the possibility of a "reverse mortgage" if you want to keep the home but need the cash. Speak to any bank or financial advisor and they'll be able to explain it to you.
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Reply By: landed eagle - Thursday, May 14, 2009 at 12:56

Thursday, May 14, 2009 at 12:56
Don't sell your house.
This is the reason I'd never part with my property.

True story.

In 2003 my best friend left his job and packed his family into the car and van for a 6 month look around Australia. Two months into the trip he developed severe headaches and was diagnosed with a brain tumor. He obviously had to return to his home for treatment. He had considered selling it before the trip. Was glad he didn't.

He died in 2004 at the age of 40.

Health issues can affect any of us at any age, no matter how fit you may feel now. The worry of HAVING to find suitable accommodation during trying times would be draining enough, without the constant trips to medicos.

This is worst case scenario,but I consider this whenever I think about the big trip round the block. I'll always have somewhere to call home.
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Follow Up By: wild dog - Thursday, May 14, 2009 at 13:55

Thursday, May 14, 2009 at 13:55
I agree totally with you landed eagle. There's no way I would be without my own house.
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Reply By: PradOz - Thursday, May 14, 2009 at 16:59

Thursday, May 14, 2009 at 16:59
a lot of replies seem to suggest that if you rent you will get damage due to poor tenants. not so. my mother and step father are on gold coast and would be the perfect tenants in anyones home. they have always treated other people property as their own. some may suggest they are the exception - i am unsure. they recently began the search for a new property to rent due to health issues prefer a place without the stairs they have now, but only to find this current market is saturated with people looking for rentals. so how do you determine if you have selected the right tenant - well its up to you to do homework on them and trust your gut feelings and only you can make the decision. i am just saying that not everyone are bad tenants. good luck with your choice...
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Follow Up By: Ozboc - Thursday, May 14, 2009 at 17:41

Thursday, May 14, 2009 at 17:41
It really depends on the property and the market it would attract -- for example -- a dodge 3 bedroom house in a dodgey area with rent of $220 a week would attract doll bludgers and scumbags (close to major cities that is )

a Good property in a nice area with rent of $600 a week + would attract more the Professional on good income and morals

Unless it ends up in the hands of 10 English back packers ... then that's a whole different story ...

you get to choose your tenants - you get to see there jobs - previous references and so forth .... Almost like a job interview

Boc

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Reply By: Ozboc - Thursday, May 14, 2009 at 17:37

Thursday, May 14, 2009 at 17:37
Greetings , have not read the other replies as i have a shocking headache , so will read them later ( hope not to repeat what others have said)

A friend of mine , His parents have done the same thing - That is they were thinking of selling the family home and traveling , they bought a big 4x4 bus - decked it all out and decided they would maybe travel for a year and see how things go - so they Rented the house out to the kids ( well kind of rented ) the Kids ( we're talking 18 - 22 yrs old) were responsible for ALL bills , that being electricity - water - Land rates - Any repairs needed - My friends parents were in there late 40's at the time and he is a Motor mechanic and she is a Nurse - so they helped subsidize there travel with working casual here and there for a month or 2 then moving on

Now they still continue to do the same thing - the kids have moved on ( my mate has moved from sydney to Perth and his sister, FNQ) so i imagine they rent the house out now - but at the end of the day - they now have somewhere to call home if they get sick of traveling - someone in the house to take care of things - Most rental agreements can be 1 year long - so not to hard to come back to your house for a year then go away again ...

something to think about


Boc
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Reply By: jindi - Thursday, May 14, 2009 at 18:53

Thursday, May 14, 2009 at 18:53
I have just rented my house after agonising over what to do, but a rental fell in our lap and I had two weeks to move out after 22 years. I thought I would be sad and sorry with someone else in the house, but amazingly I don't feel the least attached, and visiting the new tennants and seeing how they have decorated the place was fine, must be the excitement of getting away, the down side was having to move out of where we found to rent after 5 weeks and no where else to go as finishing the motorhome has dragged on a little and we are about 6 weeks away, had to find a grotty 1 bedroom unit temporarily as we live in a toursit area and the snow season starting. however I feel good about the decision and am happy as in 12 months we can make the decision to re rent or go home. The rent covers all outgoings,agents fees, and a little left over to fund the travel. Good luck
AnswerID: 364885

Reply By: Member - Royce- Thursday, May 14, 2009 at 18:54

Thursday, May 14, 2009 at 18:54
The balance of the advice above is to keep your house and rent it out.

I think you need to write down pros and cons. Sit back and look at the options. When written out they sometimes look different.

1. Do you want to sell your house?
2. Can you fund the travel without selling your house?
3. Do you want to downsize?

Best of luck with your decision making!
AnswerID: 364886

Reply By: Member - Mike DID - Thursday, May 14, 2009 at 21:13

Thursday, May 14, 2009 at 21:13
Do you know how much the Govt gets in taxes every time you sell/buy a house ?

Do you know how much the Estate gets in commission every time you sell/buy a house ?

Do you know how much the Lawyers get in fees every time you sell/buy a house ?
AnswerID: 364918

Reply By: Member - Josh (VIC) - Thursday, May 14, 2009 at 23:28

Thursday, May 14, 2009 at 23:28
Hi Lynnie,
Some very good points on here for both selling and keeping. We bought our house and over 5 yrs renovated it. Got it finished just in time to sell for our trip. We bought in the bottom of the market and sold in the top so made good money. Used some of the money to get started on the trip and used some more when money was short. We didn't want to mess with tenants, heard to many bad stories and needed some of the money to get going. Met one couple on the road who were having a ball and loving the trip but had to stop travelling and go home cause the tenants owed 8 weeks back rent before walking out and agent couldn't find new tenants. Couldn't keep up with the mortgage We had studied the market and followed trends over time so planned to sell in the high times and buy back in in the low times which seemed to work as we will be looking to buy again next year after almost 3 yrs of travelling. The low times came faster than we thought which is ok and worked well.
Funny enough we are not returning to where we started from which is part of why we sold so we had the option of settling somewhere else if we wanted. After travelling we see life differently so don't want go back to our old life style of being to busy to enjoy life. I will say one thing, my parents always rented so owning a house was a big thing for me but I do not regret selling it one minute.
Think it over carefully though especially in todays climate.

Josh
AnswerID: 364957

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