BUYING & SELLING IN A CHANGING MARKET
The property market has four cycles that it goes through. It has a peak, it then declines slowly, drops and then goes through a recovery stage.
As we go through an adjusting market it is great to have a plan together. To either sell, rent and reinvest by either upsizing in a property area, location, or sitting where you are and reassessing the best outcome of where the best areas of your property you can improve on.
There are two points that are great in different ways. Where I see the market traveling as most of you might have noticed in the past 6 months since we have had a shift in the market. There are a few reasons why this is happening.
1. Royal commission changing the lending criteria
2. APRA changing how much the banks can lend out, having buyers be more cautious where their money is going. Also has slowed up access to funds.
3. Only half the amount of sales have been transacted as last year
4. The higher end of the market has softened, drawing the median house and unit prices down.
Now as we go through a cycle, the government can always put in the following steps put encourage growth back into the market.
1. Changes to the first home buyer grant, to increase the amount
2. Give the stamp duty concessions up to the certain price points
3. Ease APRA’s choice of tightening the lending to the banks
4. Also, make it accessible to access superannuation as a funding vehicle to secure residential property for themselves.
This might continue for a while. As you see the market dropping and plateauing, the best thing as a property owner is to consider the change over cost. As reinvesting is taken into consideration, a 5% drop in the market means for you.
1. Closing the gap of upsizing property or the location of the property
2. A decrease in stamp duty
3. A decrease in transactional costs
So as we go through a change of market is it a great idea to have a plan In place to secure the best outcome for you and your family. I would love to assist and guide you in the best outcome.