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Real Estate Tips with Paul

Real Estate Tips with Paul Moriarty

Upsize and Save!

The biggest breakthroughs often come from finding the silver lining in the storm around you. In the same way that savvy investors can profit from the share market in both a bull and a bear market, real estate can deliver a healthy bonus to your bottom line in both a rising AND a falling market, here’s how.

 

In the rising market, the growth in your capital value is the obvious profit point. A home bought in Winston Hills 5 years ago for $650,000 is today worth around $1.1 million. An obvious uplift in value of $450,000, most would agree that it is much easier to make money when the market is on the way up.

 

It is widely acknowledged that the first quarter of 2018 has seen property prices begin to fall from the highest peaks of the market in 2017. In fact, in some parts of Sydney the drop has been up to 10%, in more expensive areas, the drop is has been even further from 10% to as much as 27% in high end eastern suburbs of Sydney.

 

So now, what we have are the ideal conditions to be making the move, if you have been thinking that you need a larger home. Even if your property has fallen in price, a larger home has also fallen, probably by as much or more, than yours has. For example, if you own a home that was worth $1,000,000 that has now dropped 10%, you could expect to sell that one for $900,000 in the current market. Now the home you have been wanting to buy that was $1,500,000, has also fallen 10% and you could expect to be able to buy that one today for $1,350,000.

 

 

It is that simple, instead of needing an extra $500,000 to upgrade, you can now do it for $450,000. These figures are illustrative and you need to check the markets you are leaving and entering but there is no doubt that a falling market is kind to those who are wanting to make the move to that bigger, more spacious home you’ve been after.

Still confused? Watch the video below!