Thinking of upgrading? Why now could be your best opportunity in years
The property market slowdown could be the opportunity investors have been waiting for, with experts saying now is the time to upgrade before competition returns.
As clearance rates slip and dwelling values edge lower, Raine & Horne executive chairman Angus Raine said investors willing to move against the market could secure premium properties at discounted prices.
He said periods of weaker market sentiment often presented the best opportunities to buy well, provided investors were ready to act while others remained cautious.
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“The current market is working in favour of buyers, who are benefiting from less competition and greater negotiating power,” Raine said.
According to Cotality’s latest data, home values have fallen by 0.4 per cent nationally, with Sydney and Melbourne leading the decline with approximately a one per cent decrease.
Despite the drop in median value across the nation, Raine said the mid-sized capitals have continued to defy expectations.
“This is hardly a sign of the sky falling in, and values have continued to rise in Brisbane, Hobart, Perth, and Darwin.”
“This is a modest fall in the context of today’s property values, and it is giving upgraders a rare opportunity to narrow the gap between the sale price received for their existing home and the price they pay for their next property.”
He said that if properties in the same market had their prices shift at the same rate, purchasers could actually be better off by upgrading as values softened.
Raine & Horne financial services specialist and Our Broker senior mortgage advisor, Craig Bettalli, said that buyers who acted on the front foot were best positioned to capitalise on the current conditions.
“Lending applications have eased, which means well-prepared buyers armed with home loan preapprovals can expect faster home loan turnaround times and a smoother approval process, helping them secure their next property sooner,” Bettalli said.
Raine said that population growth through migration and chronic undersupply of housing would put a floor under any price falls and continue to drive values higher in the long term.
“The long-term fundamentals that underpin Australian real estate have not changed,” he said.
“Successful property buyers think in terms of decades, not weeks or months, and their buying decisions are not shaped by short-term policy changes or the latest market sentiment.”
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