Would You Sell?

Just got a call from one of the well-known REAs in our area.

The agent, who appraised our place some months ago, has a willing buyer for a house near the Plaza, and wants to know if we are keen to sell.

I asked if he thought the current economic environment was a good time for someone to sell.

In typical Aussie fashion, he did not answer directly, but said yes, he could see that sellers might have that sort of concern with the way the economy was going. However, the potential buyer had his finances in order and was willing to pay good money. Besides, his agency had achieved good results in our area. Elaborating, he mentioned that a 4 BR house in the adjoining street had sold for $330K.

I responded in like fashion, saying that I would consult my hubby, and if we were keen to follow up, we would contact him.

I thought about the matter some more after I'd hung up.

First, even if we did achieve a good price by selling, we would have to incur costs and effort in moving.

Secondly, there is no question that there is a limited supply of housing near the Plaza and train station. As the agent's phone call confirmed, there is always demand for housing close to the Plaza.

The minus is that as these houses were the first ones to be built, they are a bit daggy compared to the spanking new 7-star energy efficient homes on Sayers Road.

If we traded location for a bigger and newer property, it would mean more comfort and less maintenance, BUT also being further from amenities. Sure I can drive, but the point in living where we live is that I don't have to drive if I don't want to. I can walk to the Plaza, to the doctor's, to church, to school - if the weather permits.

Thirdly, the Govt has just announced that it is fast-tracking the expansion of the Plaza. This is not a small project. It will cost $250m and potentially create more than 4000 new jobs. Construction is scheduled to start next year.

Just from my very simple understanding of economics, I am guessing this could boost the value of houses close to the Plaza.

So unless there is a very strong reason to move, I think we'll just stay put.