Published on May 17th, 2009
Selling & Buying in The Same MarketMakes Dollars & Sense!
The Australian property market is enjoying strong levels of activity and turnover. Buyers, particularly the first home buyer sector, are keenly snapping up affordable properties while the First Home Buyer Boost remains in place, while investors are returning to the market. Both groups are capitalising on the lowest interest rates seen for over 45 years. While some sellers are holding back, perhaps as a fear-based response to global economic conditions, they might be doing themselves a disservice and missing an optimal opportunity to upgrade or re-locate.
While national house prices softened moderately by 2.9% in 2008, the first quarter of 2009 has seen a growth of 1.6% in residential property values, according to RP Data. While that’s great news for vendors, the property market and the economy in general, many vendors aren’t aware that selling and buying in the same market can procure the same net result. “Any losses incurred when selling in a slightly lower market,” says Trent Ryan, Principal of Elders Redcliffe, “are compensated for when purchasing in the same market. The changeover figure can be the same as if conducting the same transaction in a more buoyant market. Over and above that, buying now also means enjoying capital gains as the market strengthens”.
It’s important to maintain an objective and balanced perspective when transacting on the property market. It’s even more important during times of change. The property market, like any other market, is a cycle. What goes down comes up and vice versa. Proactive, well-informed individuals know how and when to make strategic manoeuvres on particular points of the cycle – and capitalise.
“Many people don’t realise that now is a very good time to upgrade to a larger home to accommodate growing children, re-locate or make that desired sea or tree-change,” says Trent Ryan. “Sitting tight is not always the best option.” With plenty of avid buyers generating good, healthy competition, vendors can expect avid, quick interest in their home, especially if the property is well-presented, well-marketed and well-priced. For further information to help you make the most informed and lucrative property-related decision, please contact Trent Ryan from Elders Redcliffe at 23 Redcliffe Parade, Redcliffe QLD 4020 on 0421 217 574 or our office (07) 3883 2366.