When is the right time to sell your property?
There has been a lot of talk lately about the property bubble that many Australians have gained considerable capital growth from, bursting in the near future. So when is the right time in the property cycle to list your home for sale for an optimum sales price?
Everyone’s situation is different so there isn’t a magic answer that will be right for everyone, but based on recent speculation across a full range of popular media, there may be limited time left to reap the capital gains we’ve seen continue to appreciate over the past five years.
Here’s what we know about residential property prices in 2018
According to CoreLogic’s Home Value Index published in May 2018 – one of the largest sources of Australian property market data and analytics – the residential housing market in Australia is indeed experiencing a slight downturn compared to five years ago. At the same time, many residential property values are still appreciating – just not as steeply as in previous years.
The good news coming out of CoreLogic’s analytics this year is that more affordable residential housing has not been affected by declining property values.
In 1 June 2018 article ‘Australian home prices fall for an eight consecutive month’ Business Insider’s David Scutt supported this view quoting Tim Lawless, Head of Research at CoreLogic:
“The most affordable quarter of the market saw values rise by 1% and the broad middle of the market recorded a 2.3% rise in dwelling values over the year.”
With interest rates continuing to sit at an all time low, and property values continuing to rise albeit a little less steeply and more slowly than the past five years, right now may be a great time to consider selling if you’re in the market.
So when is the best time to sell your home and get the best price?
If you take a broad sweep of media reports on Victorian housing prices, the overarching theme is that housing prices are not going to continue appreciating at the rate we’ve seen over the past five years.
While your author is a researcher and writer ¾ not a property market expert ¾all reports I’ve read suggest that 2018 is a good time to sell while the housing market is still appreciating, and particularly in regional areas.
If your adult children have flown the coop years ago, and you’re left bouncing around and echoing in cavernous empty spaces, you have an opportunity right in front of you to sell your family home (for a family home sized price) and buy a home that will suit the lifestyle you want to enjoy over the coming decades. For most seniors this involves upgrading their lifestyle, while reducing the ongoing costs and maintenance burden of a full scale, family sized home and garden.
Neighbourhoods change over the decades too, and the lovely family area you raised your children in may no longer offer the same carefree sense of a familiar community.
So, the best time to sell when you’re in your senior years and planning for the years ahead, is when an independent property valuer assesses your home at a price that by your calculations (or your financial advisor’s calculations) will enable you to move on and live your later years well.
Always seek independent and professional advice before making significant financial decisions.
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South East Melbourne
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