Is the Illawarra property market tanking!? Is now a good time to buy and/or sell!?
We asked the highly experienced Wendy Ristuccia from Ray White in Thirroul for her top tips for both buyers and sellers to manage and still capitalise in this changing housing market. Here are her top tips and market summary:
Wendy has observed about a 10% drop in prices across the Illawarra. If homes are not priced appropriately they are lingering on the market for months. The heat generated by cashed up, financed and motivated buyers has dropped away since the Royal Commission tightened lending restrictions, making loan approval much harder to gain.
- Still, if you are buying and selling in the same market - it's all relative so you shouldn't lose out. Don't let a changing market delay your decision to sell if you are buying in the same market!
- For buyers, get Finance locked in early and apply for pre-approval! As mentioned, The royal commission enquiry has made lending more difficult than it has been previously. It’s not about how much equity or deposit a borrower may have it’s the ability of servicing the loan and being able to repay.
- Wanting to get in on the property investment ladder still but waiting to see what the market does? Wendy notes that Investors may be wise to purchase before the possibility of Labour Policy coming in after the election, with negative gearing then only applying for new property build investment purchases.
- Needing to upsize or downsize but scared to take the leap? Upsizing in a downturn market means stamp duty is less on the purchase price - one positive at least! However when you're needing to sell first to buy it can be very daunting. It is common to worry about the unknown, like what if we can’t find something suitable to buy in time? However, the best position when you find your dream home is to be financially ready so you can put your offer forward! Selling before you buy is sensible in this slower market and generally means you can avoid a bridging loan, which clobber you on high interest repayments.
There are also plenty of options that make selling before buying preferable, for example:
- Extended settlement
- Renting back from new owner or renting temporarily another home.
- If you choose to buy before you sell, enquire as early as you can for a bridging or relocation loan to give yourself plenty of time to have sorted or to have an estimate of what costs may be involved - as highlighted before, temporary loans like bridging loans can come with a high price tag...
- Lastly, this is changing market and therefore the key thing that will drive the sale price of your home upwards is generating competition between buyers. This obviously means you will need more than one buyer so the onus lies in finding a hard working agent who really follows up every single buyer AND has great relationships with hot buyers on their database. Ask an agent how many potential buyers they could bring through that weekend just from their own database - the answer will be telling.
- An honest, genuine agent that goes above and beyond servicing BOTH their sellers and you as a buyer will help enable a smooth and successful transaction at one the most stressful times of life - so make sure you have rapport with whichever agent you choose.
With our thanks to the lovely Wendy Ristuccia for sharing her insight and experience and for sponsoring this article. You can make contact with Wendy by clicking here... Wendy is always delighted to value your home or share her expertise, so feel free to get in touch!