You’ve seen the market make positive strides around your property, exactly as you’d hoped. Now that you have acquired some new found equity you should be laying in bed and counting dollar signs instead of sheep, but instead you may find yourself laying there asking even more questions, such as; “Should I sell now that the market has peaked?”, “Should I hang on incase prices go higher?”, “Should I consider adding another property?”, “If I was to sell, how would I go about it?”. Don’t worry, at one time or another we’ve all asked ourselves the question … “What should my next move be?”.
Wouldn’t it be nice if there was just one easy answer to this question that suited everyone’s needs? Just as we are all very different people, we are also all in very different financial situations, bringing with it a unique set of considerations when pondering these kinds of life changing decisions.
But one thing we can say for sure is that there are still strong and reliable property markets out there to profit from, no doubt about it. To that point, confidence in the broader Australian real estate market continues to remain at a high level. This could be because of low interest rates, recent healthy growth in several major markets, as well as Australian middle income earners possessing a wealthier feeling than they did 8 years ago since climbing out of the GFC doldrums.
Before any decisions are made, no matter if your property (or properties) including your principle place of residence or investments, there should be a strong understanding of if your property sits in a well-located area with sound, fundamental growth drivers in place.
Touching on what we discussed last week, this isn’t just to increase your chances of capital growth, but also to protect yourself, and your asset, when leveraged debt is attached.
But lets not kid ourselves, financial reasons are not always the only motivations for why we may consider selling a property. Lifestyle changes or desires can also be a motivation, be it downsizing and relocating for a sea / tree change, a different career in a different city, or even moving interstate for relationship reasons.
We’ve all heard of those lifestyle changes being the catalyst for erecting the “For Sale” sign on the front lawn, but what about the idea of BUYING an additional property to reach lifestyle goals?
It is true, a wise investment of any nature begins with the end in mind; checking the numbers and mitigating the risk to the best of one’s ability in order to take the best foot forward to attain a financial goal. But not all of us see it this way. For some, the goal is not a financial one measured in dollar signs, but more the pursuit of a lifestyle where we don’t ever have to be concerned with money at all!
Ironically, holding property, be it for investment or otherwise, can be a good way of getting there.
As I said earlier, should I buy or sell can be like asking “how long is a piece of string?”. Whenever I am asked this question, and it is often, I always make sure that those doing the asking are putting themselves in a position where they understand all the factors involved.
Here at Stone we pride ourselves on being as informed as possible on the local markets for buying and selling, and when it comes to investing Nationally our criteria has allowed us to boast a 100% success rate in picking growth markets right around Australia. To learn more specifically about how Stone Invest researches and identifies these markets for our customers, please come along to one of our complimentary information evenings specifically designed for investors. Seats are limited, so to reserve your spot, click here now.