Doom and Gloom – that’s all we are reading and hearing about in today’s media regarding Sydney property, yet we all seem to forget that we have had incredible growth over the last 5 years and it was only a matter of time until things cooled off as there was no way the increase could be sustained.
The Sydney market is a BIG market and within Sydney there are so many smaller markets that need to be looked at. Some areas will retain their values a lot better than others and that all comes down to the age old, location, location, location.
So, if you are buying and selling in the same market in the same area the state of the market is irrelevant. If you are buying in another area or state you’ll need to do your research, however just remember Sydney saw the highest growth in Australia, so you’ll still be on top!
People always ask, “When is the best time to sell?” and honestly the answer is “When you’re ready to sell”. It seems like the easy answer, but everyone’s circumstances are different – I sold in March and purchased in April – is that the best time? Well it was for me because my family and I were ready to make the move at that time.
Now – back to the title of this post which is about upsizing. Think about it, if we see a 10% drop in the market, it’s affecting higher prices more so than the lower ones
A very basic example –
A property that achieved $1.6m in April 2017 might now achieve $1.44m
A property that achieved $1m in April 2017 might now achieve $900k
So that’s a saving of $60k for the person upsizing.
Now this is super basic and what you may actually find is that the drop of 10% may have been on houses, however villas may have only dropped 5% as there are fewer and they are always in demand so in reality it actually a larger saving.
When the market cools and prices drop a little, it does give people a fantastic opportunity to upsize which may have been out of their reach earlier as the gap was just that little bit too big!
A great example I have is a family we were liaising with were thinking of selling their villa back in early 2017 but they just didn’t end up being ready due to issues with an easement and in hindsight they did so much better selling later.
Their villa was a small 3 bedroom in West Ryde and we recently sold it for $995k. I can confidently say that they wouldn’t have achieved much more selling at the top of the market due to several factors including their location and it was on the small side. The great price was helped as they had WigginsKeenan selling for them and if there is one thing we know – we are the best at what we do, and that is achieving bloody awesome prices for our vendors and landlords. The owner did absolutely everything we recommended and styled the property (by herself) beautifully and worked on the backyard so it presented well.
The properties they were looking at back in 2017 were out of their reach – they couldn’t even get a knock down for under $1.5m, yet now if you are finance ready there are opportunities presenting themselves, so you need to be on look out. These vendors had done their research and played the game very well and ended up securing their family home for just over $1.3m which was under their $1.4m budget – of course we didn’t sell that one 😉 otherwise they would have paid more!
We are currently in a transition market, so people are sitting on the side lines waiting to see what happens and this can be an excellent buying opportunity, no-one knows how long this will last and we will only know when we look back and say “Gee, 2018 was a great buying opportunity”.
Unfortunately, the media is a major player in the negativity and it ends up being a self-fulling prophecy in addition to the banks tightening their lending restrictions – more so whilst the Royal Commission is in progress.
Our advice is do your research or at the very least get in contact with us – we know the market and can give you realistic price expectations – then when you list with us, we work our magic to get an awesome result with our incredible marketing, contacts and Feng Shui!