Published at: 6/21/2016 3:28:57 PM
The best time to sell your home is when the market is climbing, right? Well, no, not always.
It’s a no-brainer that if you were selling your home and bailing out of property altogether, it pays to hold off until prices are skyrocketing.
But who does that?
Most of the time we sell our home to upgrading to a next property. And that’s when a cooler market can give you a serious financial leg up.
Let’s crunch to some numbers to see why.
Juicy savings on your next home
Okay, we’ll assume your current home is worth $500,000. You’re looking to relocate and you’ve seen a place you love with a price tag of $900,000. That’s a price difference of $400,000.
Now let’s say the market drops by 10 per cent. Unlikely we know but 10% offers good round numbers.
It could mean your home’s value dips by $50,000. Ouch!
But here’s the thing.
The value of the property you’re planning to buy also cops a 10% hit. Instead of being priced at $900,000, it’s now worth $810,000 – a saving to you of $90,000. And rather than face a price gap of $400,000, the difference has whittled down to $360,000. The ideal time to buy.
Don’t hold out
Okay, so this is a simple example. In reality different segments of the market move at different paces. Though the higher end of the market can often experience larger declines in value than the middle to lower end of the spectrum.
It goes to show you can come out on top when prices fall.
Add even more value to the mix with a competitively priced home loan and enjoy cost savings no matter how the property market is tracking.
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