While our market has been a roll coaster ride of ups and downs there is one simple fact that slips the mind of many vendors I speak with on a weekly basis. If you are looking to buy and sell in the same market then it doesn’t always matter what your property is currently worth in todays market. This is because the home you are likely to buy will be priced accordingly to the overall net movement in the market. This is on the basis that you are staying local and not relocating outside of the Gladstone region. There are many factors that may stop vendors from being able to go to market such as financial capacity and net equity. However, if you’ve been waiting for the market to increase to change out of your existing home, now might be the best time to do so.
I’ve met with plenty of potential sellers that say to me that they want the values in the Gladstone market to increase by $50,000 – $100,000 before they start to consider selling. This is largely due to the net equity position owners found themselves in after the LNG boom period.
The first question I ask a prospective sellers is ‘Are you looking to stay in Gladstone or move?’
If the answer is to stay and buy another home, as a means of upsizing, upgrading or simply a change of lifestyle, then there is usually an opportunity for them to sell. If the price isn’t right, right now, they may have to wait. My advice is that if their property does go up in value, so does the overall market including the home they are wanting to buy. Timing is also important and sometimes, it simply may not be the right time for that particular person or family.
Interest rates are at a record low. This also provides a great opportunity to sell and finally buy the dream family home you’ve always wanted to, and possibly for a similar repayment if you were previously paying a higher interest rate. Buying in a relatively low market also has plenty of potential upside for capital growth. Yes you can wait for the market to go up in price but if you are thinking of buying and staying in Gladstone then that upgrade will also go up in value, meaning a higher loan amount and more interest paid at the end of the day.
In previous blogs I have mentioned that the Gladstone market is starting to heat up. Well the heating has happened and without sounding silly, …the Gladstone market is now ON FIRE! This is evident by the 9.1% increase our market from this time last year. COVID-19 has changed things across the world and a lot of the markets around the Australia have felt the force of this. Luckily enough, regional markets such as Gladstone, Mackay and Bundaberg have gone from strength to strength both during and post covid life. Properties are no longer sitting on market for months at a time. Properties are selling as quickly as only a few days on market, so achieving a quick sale at a decent changeover price, might be exactly what your growing family needs.
It can really be that simple, but it can also be a complex decision. I would recommend speaking with your bank, broker or financial advisor before pulling the trigger on deciding to sell or buy. It’s a big decision but when the market is moving along nicely, strike while the iron is hot and look for that new home that you and your family so desperately need. I offer complimentary, no obligation appraisals and work with my clients to assess their options. Get in touch if you would like more information.