As a landlord, sometimes knowing when to sell your property can be one of the toughest decision to make. By selling without any appropriate knowledge of the current market can be very costly. Most of us would make the decision by following our instinct when we feel that the property can be sell at a premium price. Nevertheless, there are couple of factors that can determined a landlord to sell it which can be relocation, downsizing, job offers from another state and many more.
Supply Versus Demand
Property values are mainly affected by demand and supply of the market. According to Corelogic RP data, in last 22 February 2015, the home listing advertised has decreased in many cities such as 6% down in the states of Victoria to 56,060 compare to a year ago. Then, 4.1% down in New South Wales to 55, 834, 1.8% dip in Queensland to 64,081 followed by South Australia with a downfall of 3.9% to 17,030. When the supply is low it represents that the stock available in the market is limited so this would be applicable to sell the property with a premium price.
What does the weakening of the Australian currency mean?
The Australian property market has been very promising over the years with proven stable incline of growth due to its strong economic growth. However, over the years there are no guarantee that there would not have any hiccups in the economy so when it does it usually shows a weakening in the currency. This allow foreign investors to take advantage of the currency value instead of all their eyes in Europe and United States they may turn their focus to Australia and this increase demand in the market.
Has your size of your household changed?
Life of a student in their twenties are very different than a mature working professional and a family of six. Every segments of the market have different needs and wants. A young couple might consider moving to a bigger home when planning to have a family in the future and thinking to adopt a pet. Also, retired parents would think to downsize their home when their children have move out of the house as the extra bedrooms would be redundant.
Are home loan repayments decreasing?
In the month of February 2015, the Australian Reserve Bank has reduced the official cash rate to a historically low of just 2.25% which is the lowest it has ever been. Subsequently, according to Corelogic there were cuts in the mortgages rates which benefit the prospective home buyers. Changes like this encourage prospective buyers to expedite their decision making in purchasing.
Did you know that holidays can bring house sale gifts?
Many buyers would prefer to move in to their new home before holidays like Easter and Christmas in order to save the hassle of moving in right after the holiday. Additionally, is a great way to celebrate the festive holidays with love ones at a brand new home. As a result, many buyers would pay at a premium price just to seal the deal and ensure that they can finalize everything before the holidays.
Prepared by Hectarworld