Looking for a bigger house but worried your current home may not be worth what it was a year ago?
Or are you unsure if now is the right time given the headlines are all so negative?
Actually, right now could be the ideal time to bite the bullet and make the move. It may even save you money, which is one of the best reasons to buy a bigger house now! We recently helped a couple in this exact scenario. When they came to us they were really struggling to accept that their home was likely to sell for so much less than they had anticipated it may sell for a year ago.
However, what they ended up buying had also dropped because the agent selling the property had let the softening of the market rattle him. In the end, they saved over $120,000 buy buying their dream home at $2,040,000 – a great result given a year ago recent sales stacked up around $2,200,000. So, if you purchase at a lesser amount you are paying less in stamp duty.
On the selling side, if you sell your property for less, you are going to be paying the agent less commission. Two very good reasons to buy a bigger house now. But be warned, we know buying a property might be exciting but it’s also risky. We certainly are not suggesting you rush into anything!
That’s why we need to educate ourselves before taking the plunge. Because the answer to whether now is the right time to buy, or not, will depend on two things:
1) Are you ready to buy?
2) Where you want to buy.
There are some locations where prices will continue to fall, some locations where prices are expected to be stagnant for years and other areas where there could only be a short window of opportunity before prices rise again. The tricky part is choosing the RIGHT property to begin with. Choosing a property in the right location with all the right attributes that attracts strong buyer interest, regardless of the market conditions at the time, is key.
The message is don’t fixate on the wrong numbers – focus on the transfer costs and the end game. These really are the best reasons to buy a bigger house now.
If you want to make good property decisions, it’s our mission to help you.
Published: August 2018
Updated: February 2019
DISCLAIMER: Good Deeds blogs/buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.