by Administrator
10. January 2012 20:39
Over the last few years, the Australian property market has seen a decline in prices across most areas. Whilst this may seem to be a reason for sitting tight, it actually provides a fantastic opportunity for you to upsize your family home now.
You may have heard people involved in the real estate industry using the term a 'Buyer's Market'. This simply means that there is a large volume of properties for sale and fewer people looking to buy, thus giving the Buyer a wider choice of homes to choose from and consequently offering a more competitive price. Price declines are making more desirable homes affordable again.
Mandurah, like other regions has also experienced a drop in property values, however there is still a lot of movement in the lower end of the market. Properties valued under $450,000 are still selling reasonably well, making upsizing more affordable than ever. For example, if your property has dropped in value by 10% and is now worth $360,000, that may seem like a loss of $40,000 - not good. However, it may also mean that the house you may have wanted but couldn't previously afford has also dropped in value by 10%. So, a house previously worth $750,000 would now be $75,000 cheaper, meaning that if you buy it now you will actually have made a $35,000 gain - very good indeed! In turn, when the property market regains buoyancy your new property will increase by a larger amount.
Low interest rates also provide an incentive to upsize your new home now. The Reserve Bank of Australia have been generous in their interest rate cuts over the last two meetings reducing the interest rate by a total of 0.5%. Many banks are offering an even lower rate by locking in your home loan. If you've been wanting to buy a larger home or one in a more desirable location, now is the time to make the switch and lock it in.
If you'd like to find out how to sell your home and upsize to a better one, give H&N Perry's experienced Sales Manager, Frank Lawrence a call on 9535 1822.
