Downscaling: no use to wait until market picks up
THE ECONOMIC climate has been tough for a while now, and many people who have been considering selling to downscale have possibly been holding out until things get better, but this is not always the right train of thought, says Lanice Steward, managing director of Knight Frank Residential SA.
“All the basic factors that drive the property market remain the same, whether it’s a good economic climate or bad, if you sell at a high price it is likely you’ll be buying at a high price and vice versa,” she says.
All the basic drivers of the property market continue to be present and all that happens in an economic slump is that some of the demand becomes pent up or less satisfied for a period of time. Families will still need to move to areas with good schools, be near a university or college, have extra space to work from home or to
‘Waiting until the perfect time to sell means you pay more for the retirement home’
accommodate an extra member of the family, or to downscale or move to an estate.
Although more expensive properties tend to take longer to sell at present, there are still homes that do sell quickly or in a reasonable amount of time, and the R1 million to R4m market is relatively active, she says.
“There are some properties that sell almost immediately, particularly when priced correctly, and if they’re in highdemand areas because of the schools, such as Rondebosch,” she says. “In certain areas, like Constantia, homes in the R4m to R6m price bracket are in demand and the correctly priced stock sell fairly quickly.”
Waiting until the perfect time to sell your home, with a view to downscaling, will in all likelihood mean you pay more for the home you’re retiring to.
“The right approach if you will be retiring soon, is to sell as soon as the decision is made and buy in a retirement village, so that is the final sale and purchase of your life. The village should have all the facilities you might need as you get older.”