Browse Forums General Discussion 1 Apr 06, 2010 7:28 am Hi Guys I have been wondering about this for quite a while but I notice that many of the houses on our estate have a for sale sign within a few years of being built. I never could understand this as most of the home are just magnificent and not houses that are easily upgraded some where else. Our friend is a property developer and often builds to live and sell after a year and has done this 17 times in 17 years His wife has had enough of the moving but this is how he makes some serious money. So why do you think people sell new homes so quickly? is it for the adrenelin rush of building a new home, disappointment about the new home, purely to upgrade? the list could go on and on. I must admit, I am very addicted to the whole building thing but would rather build for investment purposes not to move. Mrs B Re: Why do people sell so soon... 2Apr 06, 2010 8:17 am I'm interested in the answer too, Mrs B. I'm always surprised when an owner sells within a very short time, mainly because I can't imagine doing it myself. I really, really hate moving! I suspect there are many reasons why people sell, but I'm curious.... Re: Why do people sell so soon... 3Apr 06, 2010 8:46 am kek I'm interested in the answer too, Mrs B. I'm always surprised when an owner sells within a very short time, mainly because I can't imagine doing it myself. I really, really hate moving! I suspect there are many reasons why people sell, but I'm curious.... I will also add that often they are the 'best' houses in the estate. There is one at the moment we watched painstakingly being built, no expense spared and as soon as it was finished, the for sale sign went up. Why go to all the effort just to sell? Is it the money....I dont think so because of the expense, deisgn, attention to detail that obviously went into the build. I am so curious. Mrs B Re: Why do people sell so soon... 4Apr 06, 2010 9:06 am Marriage break-ups?? Over committed financially and cant afford it?? Unexpectedly get job transfer to another state?? hehehe, I'm the wrong person to answer this - I bought a house and lived in it for over 20 years before building and moving into this one. Re: Why do people sell so soon... 6Apr 06, 2010 9:27 am We will be selling ours next year. We have been here since Nov 2007. A number of factors are involved for us: * We are unhappy in our area * Financial circumstances have changed and we can now build a larger home * Location to good schools There are quite a few homes for sale in our Estate. Re: Why do people sell so soon... 7Apr 06, 2010 10:19 am because some people dont like the area because some people have financial circumstances because the warranty of the house ends fast thanks Mohamed thread viewtopic.php?f=31&t=31827 8/5/10 we've been scraped 15/5/10 we've got a slab 21/5/10 frame started 23/5/10 frame finished My thread: viewtopic.php?f=31&t=31827 Re: Why do people sell so soon... 8Apr 06, 2010 10:23 am we have one set of friends who do this and they know several people who do this as a way of making a financial gain. here the minimum you have to live in a house is , I think 3 months to reduce your capitial gain. So my friends have at various times built a house and moved in for 3 months and then sold, built and moved within 2 years. ( he is a qualified, registered builder) This year they have just sold their house that they have owned for the longest time, over 7 years ( the 3 month house they moved out of this one for the 3 months) They plan to build and then sell 2 houses within the next 15 or so months. Moving into each one for 3 months + and then after that my gf said she wants a break. I think she is hoping her husband will retire. Re: Why do people sell so soon... 9Apr 06, 2010 10:36 am For us, we realised we were being overly cautious with this build and would like and could afford larger. It is also, as others have said, a really good way to make money (if you are smart). After owning our first house for only a few years, we sold it for double what we paid. Although we don't expect to be that successful this time we still expect to make a profit which allows us to keep upgrading She's backkkkk... Re: Why do people sell so soon... 10Apr 06, 2010 11:54 am We did it because we went from new house empty nesters to 2 in law son/daughters and 5 grandchildren in just a few years. So we built another house with more entertaining room. Building doesnt seem as stressful to us as it does for others so we have been lucky that way. Other moves have been for various reasons. Re: Why do people sell so soon... 11Apr 06, 2010 4:27 pm Sharee For us, we realised we were being overly cautious with this build and would like and could afford larger. It is also, as others have said, a really good way to make money (if you are smart). After owning our first house for only a few years, we sold it for double what we paid. Although we don't expect to be that successful this time we still expect to make a profit which allows us to keep upgrading Sharee I understand your logic and somewhat agree with it. The issue is the price of land also goes up when you go to buy another block. So from my experience its much the same. Re: Why do people sell so soon... 12Apr 06, 2010 6:32 pm My way of thinking is that a lot of people who invest this way purchase two blocks of land in the same area at the same time, build on one, live in that one for 12-18 months whilst their other land appreciates in value, and then sell-up, make money off the first property and start the building process again on the subsequent block to reduce their final mortgage. Others are just addicted to the building process (argh, I don't think that would be me... building doesn't lend itself to 'perfectionists') Others, more like me, sell because they don't like the area, or their neighbors, or perhaps their neighbors homes (IE big double-story overlooking or overshadowing their property). I sold my first build in 18-months because I hated my area/street... P1T Read about my building experience: http://secondhomebuild.blogspot.com Dale Alcock Homes - 'The Nautilus' in Bletchley Park, Southern River - WA Read about my Clipsal C-BUS Home Automation Project: https://forum.homeone.com.au/viewtopic.php?f=34&t=20854 Re: Why do people sell so soon... 13Apr 06, 2010 9:14 pm I know someone who buys and sells regularly and does so for a couple of reasons. The first reason is finacial. He waits until the estate is finished and looks nice and land is no longer available to build. Once this happens the estate becomes more sort after because people see it as an established quality area rather than a great unknown, prices tend to hit their peak relatively speaking and you can sell up and look into the next new estate where land is available. The second reason is every time he builds he aspires to build something bigger and better and the money he makes allows this to happen. So many people have different ideas about what they want once they build a house and live in it. I'll be selling up after roughly two years but my reasons are I've decided I don't like living in a modern estate with the smaller blocks of land and higher density of housing. Also there is no ADSL/Cable here which affects me greatly - I currently pay $130 p/month for two tin cans and a piece of string. My neighbours over the back fence are also selling as the area is alot different since the houses have been built behind them and they now have someones deck overlooking their backyard (not me). Re: Why do people sell so soon... 14Apr 06, 2010 9:39 pm Mrs B So why do you think people sell new homes so quickly? is it for the adrenelin rush of building a new home, disappointment about the new home, purely to upgrade? the list could go on and on. they build a house that is bigger than what they will ever need.. mortgage didn't seem that high at record low interest rates... don't worry about interest rate rises we will just work extra hours etc... then they realise they can't afford it so sell their house and then go back to renting... at least good thing is that in our area, houses that are 12 months old have sold for 30% more than what they cost to build.. that is not a bad return... just shows how crazy this property market is and that interest rates do need to rise alot more.. maybe another 1.5% before the end of this year.. Re: Why do people sell so soon... 15Apr 07, 2010 10:28 am Thankyou for all your answers so far. It seems to me that a number of people do sell to upgrade and make a profit when the market is high. Its just got me thinking that if I sold this house, brought something older, bigger block (future dev) in the same suburb for a 3rd of the price, I would have no mortgage, pay off all income producing assets, and have a sum left in the bank. This makes financial sense I know people do this for a living but I cant make that 'emotional' scarifice in selling my 'dreamhome'. mrs B Re: Why do people sell so soon... 16Apr 07, 2010 12:22 pm borg Sharee For us, we realised we were being overly cautious with this build and would like and could afford larger. It is also, as others have said, a really good way to make money (if you are smart). After owning our first house for only a few years, we sold it for double what we paid. Although we don't expect to be that successful this time we still expect to make a profit which allows us to keep upgrading Sharee I understand your logic and somewhat agree with it. The issue is the price of land also goes up when you go to buy another block. So from my experience its much the same. Yep land sure does go up, making the block I live on also more expensive. I guess you make the money if you're clever in your 'finishing' of the property. Though it may only have cost me 10k to finish window coverings, lanscaping and lighting, the convenience factor to many of moving into a 'finished' property is worth alot more (obviously that is an incredibly over simplified and under priced example but you get my drift ) She's backkkkk... Re: Why do people sell so soon... 17Apr 07, 2010 4:13 pm wakeboardandy at least good thing is that in our area, houses that are 12 months old have sold for 30% more than what they cost to build.. that is not a bad return... just shows how crazy this property market is and that interest rates do need to rise alot more.. maybe another 1.5% before the end of this year.. Making money from it is fine in a booming economy like we have now. But what happens if things go bust. Another 1.5% would be adventurous. I don't think Stevens has it in him. Re: Why do people sell so soon... 18Apr 07, 2010 4:21 pm d@n Another 1.5% would be adventurous. I don't think Stevens has it in him. yeah maybe.. but will go up alot more over the next couple of years.. but hopefully people have budgeted for at least 10% interest rates on one wage.. if not then they probably shouldn't have entered the housing market in the first place. Re: Why do people sell so soon... 19Apr 09, 2010 9:37 am We did it for the $$$. 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