Softening Property Market? Time To Buy Or Sell?
Two most commonly asked questions by many Australians regarding real estate
- When is the best time to buy?
- When is the best time to sell?
The overwhelming answer is a simple……Now!
The Best time to Buy:
A few years ago, a conversation with a couple of first home-buyers regarding this very subject concluded with their deciding they would wait, as certain newspaper articles at the time were talking about a pending market crash. Like many people at the time, they thought it wise to wait for property prices to drop before they buy. Back then, the property they were looking to buy could have been purchased for $385,000 - today the same property is now listed for just over $500,000 by the very people who originally purchased it for $385,000. The first home-buyers are still waiting for prices to tumble, and in the interim, have managed to save an additional $42,000. Whilst these additional savings are commendable, this amount is about half as much they could have realised if they had purchased then, sold now, even after all the related costs! If you are ready to buy, have done your research on a property you believe meets your needs and the asking price represents value etc, then simply just buy, don’t wait! Just make sure you are pre-approved for the home loan you need!
The Best time to Sell:
If your circumstances have placed you in a position where this consideration is necessary, then there would have been a number of factors already taken into account to get to this point e.g. your family has outgrown current home; need to relocate to another city for work; financial circumstances have changed; you need to down size; you have grown tired of your current area and so on. If you are ready, and need to sell, then now is the best time to sell. It is pointless listening to well-meaning opinions and arguments such as “if you hold on a bit longer, you will get more for it” when there are compelling reasons to act sooner rather than later. Hanging on in some cases can actually do more harm than good, depending on circumstances.
The reality is we are starting to experience a softening market, nationally. However, this doesn’t guarantee prices are coming down – more likely to be prices simply aren’t going up as hard and fast as what they have been.
A little 2- bed weatherboard cottage purchased in Footscray in 1980 for $17,500 is worth over $1million dollars today. The market softened many times during this period, yet the property has not lost its value – quite the opposite! Remember, real estate is medium to long term investing, not short term.
Should you wish to explore how this relates to your situation, please feel free to call me on 0438 041 111 to organise a time for a confidential discussion.
As always, enjoy life, work hard, play safe and remember that we are always here to help you
‘Take the Confusion Out of Lending’
Peter Vinci - 0438 041 111