The age old question. When is the right time to put my investment property back on the market for sale? The short answer is, it depends on your individual circumstances. However, there are considerations for property investors which can guide them down the path that is best suited toward their property investment goals. Before we begin, we always recommend that you speak to an expert. So if you would like to have a confidential conversation about selling your property, please contact our sales team on (02) 8507 2444.
Should I sell in a particular season throughout the year?
Seasonal considerations are something that are traditionally relied upon by real estate agents and ultimately, property owners. Most agents will tell you that Spring is the optimal time to sell your property as Australians are coming out of winter, the weather is beautiful and there is an aura around the country as we lead into the end of year holidays. However, statistics show us that choosing the right season is not as important as one might think.
What is more important, is the stage of the property cycle the market is currently in. This will ultimately determine what is the most suitable price for your property, and what you can expect buying conditions to be like.
Understanding market cycles
Like in every market around the world where goods and services are bought and sold, the property market is susceptible to cyclical changes over time. Each stage of the property market cycle is dependent on the level of supply in the market versus the level of demand.
Market supply is measured by the number of sellers who are currently in market, as opposed to market demand which is measured by the number of buyers who are available to purchase those properties. This dance between market supply and demand is what determines market price (which of course is one of the most important factors when making the decision to buy or sell a property).
Property markets around Australia can be in different stages of the cycle at different times, which is why you should speak to a property expert to see which stage your local market is in.
Considering your personal circumstances
Choosing at which stage of the cycle to sell your property is not always the be all and end all. Whether you are selling your family home, or an investment property, you need to consider if this is the best time for you personally. This is based off your individual goals and other personal considerations such as:
- Has my property reached a price that I’m comfortable selling at?
- Is this a good time for me to move?
- Has my ability to borrow improved since I bought my last property?
- Do I need a property with a higher yield (rent) to achieve my financial goals?
- Can I afford all the transitional costs of purchasing another property?
- Can I take on more debt?
- Do I need access to the equity in my property?
Consult an expert about your property
Whilst it is helpful to understand how property markets and cycles operate, it is always best to consult a property expert. Great Real Estate agents have a deep understanding of how these markets work because they have enough experience to have witnessed each stage of the market cycle, multiple times over several years.
But the true value of using an agent is their experience in navigating the challenges and opportunities that come with the different stages of the market cycle on behalf of their clients.
At True, our property sales experts are constantly working with different clients, who have unique factors and considerations. Which is why we are able to bring a unique, tailored experience to each client depending on their needs.
If you would like to have a confidential conversation about selling your property, or your broader property goals, contact our Managing Director, Michael Catalano on 0449 878 376