There are plenty of opinions out there on when is the best time to sell a property. Most are little more than old wives tales. The most common one is that you should sell in the Spring. The very fact that some people believe this one and indeed go to market in the Spring means there is usually more competition with other vendors sometimes making it a poor time to sell.
The best time to sell a property is when there is little competition amongst other vendors and buyers are forced to compete for the limited supply. A good rule of thumb is that when an area has close to or less than 1% of properties on the market it becomes what is coined ‘a seller’s market’.
In a seller’s market, buyers, forced to compete with each other, often contribute to price rises in the area as they out bid each other for the available properties.
An example of this is happening right now in The City of Belmont in WA which includes the suburbs of Rivervale, Cloverdale, Redcliffe, Ascot, Kewdale and Belmont – all close to the CBD and airport and in high demand from FIFO workers. Real estate agents are reporting increased numbers through home opens and often multiple offer scenarios on new properties listed for sale. With the whole of The City of Belmont at around 1.2% and in particular Cloverdale and Redcliffe (bordering the airport) at under 0.7%, demand is outstripping supply making it a great time to be selling in these areas.
Of course there are better times of year to sell different types of property. Resort style apartments like those along Tanunda Drive Rivervale WA with large pools and decking always present better in the summer and demand is usually higher at this time of year. For properties with lush gardens, summertime can be a poor time to sell if the gardens are very hard to keep green. Properties that appeal to investors (usually ones with good returns and up to $450,000) often are best sold around the end of financial year as demand for them increases at this time.
Ultimately the best time to sell comes down to your personal circumstances. Too often I see owners holding onto property that is obviously causing them lost sleep and stomach ulcers. There is never a guarantee that property will always rise in value so sometimes the right time to sell is NOW. Many financial advisors in the past have told their clients to hock themselves up to eyeballs with debt and purchase as much property as they can possibly buy. This has not always been good advice and there are serious risks associated with overextending oneself with debt. Property is not as liquid as other assets so if you are forced to sell then the timing could work against you.
Many owners are finding that with lower interest rates and higher rents that their holding costs are coming down and even with lower growth prospects in the near term they are renting their properties out and not selling.
If you would like to speak to a property manager about renting your City of Belmont property or would like a confidential chat about value of your property or the best road forward then please call Ray White Urban Springs on 08 9277 3555.
Media contact: Andrew Huggins 0413 231 303