Should I sell or hold?
It’s a good question and one we are getting asked this a lot at the moment.
As our face masks get pushed further down the back of the glove box and we feel like the worst of Covid is behind us, it is understandable that some people feel like de-risking their life or reallocating funds which may include selling an investment property to reduce debt or top up the bank balance.
Simultaneously the property market generally is enjoying a resurgence although this is sector specific and right now it is the housing market and provincial areas that are hogging the spot light.
The last few years have seen a significant reduction in the construction of new apartments which is a big change to the supply boom over the preceding 5-10 years. This means the supply vs demand balance will start to swing back in an owners favour over the next few years which is the underlying case for apartment value growth in that time frame. Many market commentators are increasingly confident there will be a housing shortage around 2023-24 and are forecasting a step up in both capital and rental values from then on.
Interest rates remain low and economic activity has rebounded strongly which augers well for a strong growth over the same time frame.
In the current market, apartment buyers are overwhelmingly owner occupiers with many first home buyers amongst them. They are reasonably price sensitive and have a good selection of apartments to choose from. This means your presentation and pricing should be spot on to attract the best buyers and achieve a sale within the 4 week marketing period.
As is the case in any market, if you’re more of a casual seller and not 100% committed, then you might be better off not embarking on the sale process at all and wait for a time and market that suits you better. Marketing will incur costs and potentially unsettle your tenant (investment owners) creating lost income and expenses which sets you back if you don’t find a suitable buyer.
Our current sales activity is generating good interest and (if required) finance approvals for most buyers is being approved in a couple of weeks. We are noticing a significant difference in the number of potential buyers and pricing for apartments that are presented and marketing well which captures more buyers, offers and sells quicker for a better price.
There are a few other things to consider when thinking about selling and we can provide you with specific advice and recommendations about the best time, cost and strategy to market your apartment for sale. Ideally your decision should be rational and not emotional.