You can sell a property and make a very good return if you watch how you market, and how you manage the campaign and know when to say NO!
Buying property and holding it, is a brilliant long term money making strategy. The trick to capitalising on your investment is knowing when to say YES!!
We can see that the clearance rates are moving slowly from the 70 percentiles and into the high 60’s. This last occurred in late 2010 but at that stage the cash rate was 4.5% and lifted to 4.75% with banks indicatively lending at discounted home owner rates at around 7.15%. Official rates sat until Nov 2011 when finally they were dropped 25 basis points after both mining businesses and housing prices had stalled for nearly a year.
Clearance rates dropped throughout 2011 into the high 50’s and stayed there until early 2012. With the advent of further interest rate drops in May and June the clearance rates hovered around the low 60’s and then after 2 further interest rate cuts the clearance rates lifted into the 70’s and prices, which stagnated (not dropped) took off in 2013 and 2014, when we again saw 70% plus clearance rates.
As the clearance rates have dropped this time, we are already in a very low interest rate environment, with no uptick on the radar. I think there will be a very short stabilisation in price point, but it will take off again a lot quicker than 2011/2012
Many people were slow in the uptake of buying bargains, waiting until they saw the lift in clearance rates and the market obviously gaining momentum. The sage of Omaha, Warren Buffett, has said “Be fearful when others are greedy and greedy when others are fearful”
Buying the right property at the right time is a great way to set you up for the future. Selling a property at the right time for the right amount is just as smart.
If you are considering buying or selling a property give us a call to have a free no obligation chat about how we can assist you.
Ian James