Is 'now' the right time to hit the property ladder (again)?

There's a lot to weigh up and consider when deciding on the right time to sell, and we want to make it easier for you. Everyone has a different reason, but whatever it is for you, the desire to move on is a big deal. You want to make sure the decision you make it well informed.

Read on for ‘food for thought’ ideas, tips and checklists to help you weigh up if you’re really ready to move…or not!

Why Sell?


To make the best decision you can, start by interrogating your motivations. Make a list of the reasons for your move and then take a reality check. Will moving solve these problems?

Make sure you understand your motivations for moving, as well as what moving could be disrupted by making a move.

It's important to learn about the best time to sell, to be sure of your financial position, and to consider the emotional side of ‘upping sticks’ and moving on. You need to view your house as a product in order to be emotionally ready to move on.

When is a good time to sell?

 
The ideal situation is to sell when you don’t have any pressure to do so, so you can wait for the price you are hoping for. 

Market conditions play a key role in timing, but it's important to remember that unless you’re buying into a market with different conditions (e.g., moving to a different town), you’d be both a seller and a buyer (at least for a short period of time).

Seasonality in real estate is also worth considering. Does your house look at its best when the deck doors are open, the sun is streaming in? Unless your house suffers from damp or too much shade, perhaps taking advantage of the winter months when there are fewer listings (but still plenty of buyers) could allow your home to stand out and reduce competition.

Other factors to consider include personal circumstances. If you have children, how will the move affect their schooling or extracurricular activities? Have you recently experienced major life changes like a loss or health issues? A stable mindset can help you achieve a better outcome when the time is right.

Are you ready financially?


There's a lot to consider in this part of the picture, and it can be overwhelming. Interest rates are always changing, and so is the market. What implications will a move have on your mortgage repayments, rates and utility bills? Will you need to pay body corporate fees where you are hoping to move?

We strongly recommend speaking to a local salesperson and booking in a free market appraisal. This holds no obligation to list and may be the end of your ‘to sell or not to sell’ journey, but it will provide you with a framework for determining the financial implications of a move in a realistic and current way.

Work out a loose budget for the total costs of moving as a starting point before meeting with your agent, mortgage broker or lawyer. Include your current costs, work out your current equity and think about the major upcoming costs of moving into your next home.

 

Weighing up your options


Depending on your income and ability to service your current mortgage and that of a new property, keeping your current home as a rental property may be an option. This would involve using your current equity as security for a second property while becoming a landlord. This is where a chat with your mortgage broker or bank will really help.

If you love your home and think you will struggle to find something else that ticks all the boxes then consider this as an option. Is it as simple as a fresh lick of paint and new carpeting? Or if it is a substantial renovation that’s required, be sure to work out the numbers and be careful not to overcapitalise.

If creating a rental property empire or renovating fail to tick your boxes, a complete change in property could be what’s on the cards for you. Ask yourself, is the time and money that you spent on your home in line with the amount that you may gain or lose in selling it?

Now what?


Hopefully, this has helped you to organise your thoughts and perhaps highlighted some considerations you hadn't thought about.

It may not be the right time for you, but you have a bit more information to hold in mind now, so that you will have a better idea when the right time does come along.

If you think you are ready to sell, or would like to talk to something about it to learn a bit more, contact your local Professionals office.  We can answer any questions you might have and guide you in the right direction.