Australia’s property market is one that has experienced both rapid growth and rapid decline in the past 12 months. In 2018, banks have tightened their lending criteria and although prices have dropped, many asking prices for real estate in Australia are just too far out of reach for young families and single people to get a foothold on the property ladder.
Furthermore, it can’t be hard to identify the best times to buy and the best times to sell property in Australia. The market is a complex and ever-changing creature that requires constant supervision in order to predict its behavior, but not everyone have time for that. We spoke to Luke Harris, co-founder of The Property Mentors, to get his advice on how to know when you really need to buy a new property, and how to know when to sell your property.
When to buy:
“It’s time to buy a new property when you have outgrown your current home and need to upgrade,” says Luke. “It’s also good to plan an upgrade into a larger property as your family grows in advance, so you aren’t in a rush when the time comes.”
“When your financial position allows you to upgrade to a new home, wait for a time when there are more sellers than buyers, so you can negotiate harder and have more choice,” says Luke. “Another indicator that it’s time to buy is when your employment changes. Consider moving closer to work for a better work / life balance, and if you’re planning for retirement this could be a great time to downsize and have little or no mortgage left.”
When to sell:
“We try to avoid selling property if possible,” says Luke. “Consider if keeping the property and renting it out is viable options for you. If you must sell, the best time is to sell when similar properties are selling quickly and the amount of ‘days on market’ for each property sold are low.”
“It’s time to sell when you are looking to downsize, and you may be able to cash in on the equity you have built up and pay cash for a smaller property.”
Luke also recommends thoroughly evaluating your current life situation to anticipate if it’s time to sell your property.
“When your financial situation is likely to change, sell in advance to avoid putting yourself in a bad financial position when the time comes,” says Luke. “If your relationship ends and you can no longer afford to hold the property, sometimes it’s better to sell the property straight away.”
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