Upgrading gets urgent if forecasts are correct
BIS Shrapnel got a lot of media attention this week with their claim that Brisbane’s median house price will rise 20% in the next 3 years. Every good real estate agent is shouting this one from the roof-tops. And for those of us who already own a property in Brisbane we’re all hoping they’re spot-on with the forecast.
There is a mood of confidence amongst Brisbane’s home buyers at the moment. Lower interest rates, fresh approach from a new state government and, from this weekend, changes to our stamp duty that will save many home buyers $7000.
So if you’re looking to upgrade your home, and BIS Shrapnel are correct, you would do well to act now. If your $400,000 home rises 20% it’ll be worth another $80,000. But if the $700,000 homes you have your eye on have the same jump in value they’ll cost you another $140,000. You might keep hearing this “is a bad time to sell”, but that delay would cost you $60,000.
We know there’s a lot of pride involved with our home ownership. It’s usually our biggest asset and we ‘get’ that it’s hard to sell low, or even at a loss to what you paid. But the logic of these simple maths for upgrading your home do sometimes seem to get lost in the emotion.
If you’re just selling up your property to stick your dollars under the mattress then wait. But for those considering a new home the wheels of the market are still turning. Buyers are still buying and sellers are still selling.
Please tell us what you think?