So you are thinking about selling your property.
There are a number of things to consider when looking at selling a property to ensure you are making the right move for yourself long term.
What am I hoping to achieve by selling?
By asking yourself this simple question you will get a clearer perspective on what you are hoping to achieve through the move. There are many reasons for selling; death, divorce, trading up, downsizing, work or lifestyle change, or simply in some cases, itchy feet. Put another way, what is your next step after selling this property? Depending on your individual circumstances and the way the current market is trending, there may be benefits in exploring alternative investment options. While a quick sale may seem to be the easiest option once you have decided to move, if you can explore the longer term outcomes you desire from this sale there may be other, more profitable options available to you.
Instead of selling, can we use the equity in our current property to purchase our next property?
I find so many sellers have not even asked themselves this question or thought of this as an option, yet in many cases the seller has untapped equity in their property. This equity could quite easily be used to purchase their new property, allowing them to keep their current property and turning it into a great investment opportunity. Does my property have the potential to turn into a good investment property?
Should I look at renovating our current property to achieve the same outcome?
It is amazing once you sit with potential sellers and find out what they are trying to achieve, they reveal they absolutely love the position and location of their current property. As your requirements change in terms of up or downsizing, a renovation could be a simple and budget conscious option to consider.
How much are the changeover costs going to be?
This is a very important question to ask yourself so you can budget and know the price range to be looking for in your next property. Things to be considered in this are:
• Government charges e.g. stamp duty and registration costs. See Stamp Duty calculator
• Conveyancing fees
• Commission and marketing expenses
• Search costs
• Discharge of mortgage (if applicable)
• Your proportion of rates and taxes as at the settlement date
• Moving costs
Will I have to pay capital gains tax?
Just because a property is your current principle place of residence does not automatically mean you will not have to pay capital gains tax. I have sold properties for couples who have been caught out on this, especially when renovating for profit. Your accountant or financial adviser will be the best person to speak with to ensure you know exactly where you stand to allow you to budget correctly or possibly change your time frames around selling to allow for this.