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!