When is the right time to sell? This is a question we are asked every day. It isn’t a one size fits all answer as everyone’s situation is different. However, here are 10 indicators to help you assess whether now is the right time for you to sell up and move onto greener pastures.
Low cash rate
The current cash rate of 1.50 per cent has resulted in favourable conditions for buyers (and therefore sellers). The Reserve Bank of Australia has maintained this cash rate since August 2016. Interest rates have a massive impact on the property market as it is the cash flow trigger for affordability and determines both supply and demand.
With home loan repayments easier to manage, the property market has been made more enticing for buyers, not to mention the omnipresent fact that the advantageous rates won’t last forever!
Weak Aussie dollar and share market
A low Australian dollar is beneficial to those who are selling property, as it makes it more affordable for overseas investors. The Australian dollar, at the time of writing is, $0.77, a significant drop from its high of $A1.10 in 2011.
Recent global economic and political events, has seen volatile movements for Australia’s share market. In February 2018, $60 billion was wiped off the Australian share market. Not only does this make property more appealing to Australian’s and international investors, but the added competition between buyers will likely push up the price tag.
Do you need the money?
This is an obvious but important point. In most cases your property will be your most valuable asset. Consider whether selling your property would enable you to be smarter with your money. Perhaps it will help you upgrade, free up some money to enjoy other parts of your life, enable you to put money into a business or investment, or perhaps you are finding it hard to service the loan and want to remove your debt burden. Whatever the reason you need to understand your finances as this can be a big motivator to sell or not. Of course discuss your individual financial situation with your accountant or financial advisor before making any decisions.
Your neighborhood has seen a massive price rise
Have you been lucky enough to live in a suburb that has seen a price hike – certainly many parts of Australia have seen this. Whilst this makes it hard for first home buyers, if you own your own home it might be the right time to sell, to benefit from the real estate boom that much of Australia has enjoyed over the last few years and buy something that better suits your needs.
Perhaps you can afford that upgrade now, or want to free up some money to travel or move closer to lifestyle activites you enjoy? To asses this you need to understand what’s happening in your area. Your local LJ Hooker agent lives and breathes real estate and can provide you with a Local Market Report – a deep dive into the sales, trends and market fluctuations in your neighbourhood.
Your family is expanding
If you’ve added a few kids and perhaps a pet into your home upgrading your home is a natural step. You might find you need more space or perhaps want to move to an area that has better lifestyle offerings such as parks, family friendly neighbourhood or access to good schools and amenities. Even if you don’t have kids buying a home near a good school is great for re-sale.
The kids have left the nest
The other end of the story – is that the kids have moved out of home and you no longer need the space – oh and wouldn’t it be nice to free up some money so you can travel and do other things with your time rather than cleaning the large family home.
The Neighborhood isn’t for you anymore
Does your current neighbourhood suit your lifestyle? If you are an active outdoors type – can you access the great outdoors near your home? Do you love the cafe, eating lifestyle but are miles away from anywhere decent so have to travel for ages to indulge your passion? Figuring out what you want in a neighbourhood is a good step forward and an easy way to assess whether your current suburb ticks the boxes. Here is a guide to help you find the best neighbourhood for your needs
Hating the office commute
Are you tired of the long commute to work each day – perhaps moving closer to where you work could be an option? It will free up those hours spent in traffic or public transport – just think how much more time you’d spend doing the things you like!
If you are looking to renovate your home it is important that you consider whether your renovation is adding value or whether in the long run it will lose you money. As a home owner when it comes time to sell your focus will be on ensuring you make the most amount of money from the sale, but if you have spent too much on the renovation you may have overcapitalised. You need to determine what you want to achieve from your renovation, how much it is going to cost, what value it will add to your property and if it would be cheaper to buy a different home rather than renovate.
A fresh start sounds fabulous!
We’re often told the Australian dream is owning your own house, with two and a half kids and a picket fence. But times change, and with it, so do our dreams. Nowadays, lots of people prefer to own an apartment, or a more compact house close to the city. You don’t have to subscribe to what you’re told is the right type of property, because one size doesn’t fit all!