Look at this scenario…
This time last year, you believed your house was worth $2,000,000. Now, prices in your suburb are reported to have gained 10%, which makes your home now worth $2,200,000. You have just decided to retire and take on some consultancy work. The good news is that your next house, which would have fetched $1,000,000 a year ago, is only worth $100K* more than it was back then – now $1,100,000. So, if you downsize now, you’ll be $100,000 better off than you would have been last year and certainly better off than if you wait for interest rate rises to take effect and price growth to slow again. Time to jump!!
* all things being equal, which may not be the case if you are looking in a completely different area.
For more information on buying property in Sydney go to www.gooddeeds.com.au
Image courtesy of Michal Marcol http://www.freedigitalphotos.net/images/view_photog.php?photogid=371
Yes, but it will need to be a significant downsize. Transactions costs on selling and buying 2M and 1M houses will easily eat up any gains. Not to mention the hassle of moving.
ReplyDeleteFair point - though transaction costs are goiong to be factor in any move. It's a matter of picking the best market conditions to make a desired move rather than deciding to move just because of market conditions.
ReplyDelete