The right attitude is producing big smiles
It was interesting to a couple of different articles recently about a few Melbourne residents who have decided to punt on the direction of the property market by selling their homes now, then renting for a while before they buy their next property, in the hope that prices will fall further.
As anyone who has been around the property market for any length of time will tell you, this is an incredibly short-sighted strategy. Not only could the benefits be just a few percentage points at best, but it also has the potential to cost far more than that in the long term because, as the old saying goes, “nobody rings a bell at the bottom of the market”. The simple fact is that most people will not be aware that prices have begun moving upward again, (as they inevitably will at some point), until several months after that process begins.
In fact, we saw some figures recently that showed even if you had bought a property in Melbourne at the median price at the very TOP of what had been a strong growth cycle in 1990, and then held that property through various periods of ‘economic doom and gloom’ like ‘ the recession we had to have’, the GFC, home loan interest rates hitting 17-plus% and more, that property would now be worth close to SIX TIMES what is worth back then!
It is that kind of understanding that is driving so many of today’s buyers to continue to pursue the right property. Indeed, they see the current market as an opportunity to buy at better value than they might have paid just 12 months ago, whilst those who have to sell as well realise that they are completing both transactions in the one market, so the ‘swings and roundabouts rule’ applies.
We saw an example of this at this weekend’s auction of a totally unrenovated Californian Bungalow at 8 Bellarine Street in Preston (pictured). Whilst this 3-bedroom home clearly needed a lot of work, it enjoyed very central location close to shops and cafes, the trams in Gilbert Road and St Raphael’s Primary School, providing an ideal setting for a buyer who wanted to create their own vision of something special.
It was this attitude, along with a realistic approach from our vendors, that produced an excellent sale at $830,000…a result that put a smile on the faces of all concerned, as you can see.
Remember, if you are looking for any advice or guidance on any property related topic, you can give us a call at Barry Plant Preston any time.
Get more from Barry Plant.
Sign up for our newsletter