The good news about Syd­ney prop­erty prices!

Monthly Chronicle - - Real Estate - Chris Hop­kins

Fi­nally some good news about the Syd­ney prop­erty mar­ket. Right now, mar­ket con­di­tions are per­fect for those want­ing to trade up. While many peo­ple are choos­ing to wait and ride out the cur­rent real es­tate cy­cle, a few have recog­nised the unique op­por­tu­nity that now presents it­self in this mar­ket. Ev­ery­one is aware that the mar­ket is cool­ing and many peo­ple who have been think­ing about sell­ing are putting it off un­til prices re­cover. This sounds like a good idea, how­ever, if you are go­ing to be sell­ing in or­der to buy some­thing else, you could be cost­ing your­self tens of thou­sands of dol­lars by wait­ing for the mar­ket to rise.

Be­ing overly con­cerned about your sale price may cost you the op­por­tu­nity to land your­self a bar­gain when you are buy­ing. When buy­ing and sell­ing in the same mar­ket, your sale price and pur­chase price are largely ir­rel­e­vant. The im­por­tant num­ber to look at is the “change-over price”. In the real es­tate cy­cle we find our­selves at the mo­ment, the change-over price is at an all time low. Cou­pled with the low­est home loan in­ter­est rates for more than a gen­er­a­tion, the cli­mate is per­fect if you are con­sid­er­ing a move. You will have a lower mort­gage and a lower in­ter­est rate than you would have had 12 months ago. And whilst banks are be­ing more dili­gent in their pro­cess­ing of ap­pli­ca­tions for home loans, they have plenty of funds avail­able for good cus­tomers. And with prices down, your other pur­chase costs such as stamp duty will be re­duced.

Once the mar­ket en­ters the re­cov­ery phase of the cy­cle, prices will rise and it be­comes a more dif­fi­cult mar­ket in which to sell and buy. In such a mar­ket you could find your­self hav­ing to rush in to buy be­fore prices rise be­yond your ca­pac­ity. How­ever, the cur­rent cy­cle of the mar­ket gives the savvy seller/buyer a great op­por­tu­nity: low change over price, low in­ter­est rates, less time pres­sure and in­creased avail­abil­ity of fi­nance. There has never been a bet­ter time to sell and buy!

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