Property Investors Find It Is A Buyer’s Market
A national election always has some influence on the property market for a short period and now is no different.
But the election is not the reason that it is a buyer’s market at the moment.
What are the benefits of a buyer’s market?
When the market prices are not moving it is a time when an investor can sell a property and take the time to source a property that is worth the purchase and on which some funds can be invested.
Example:
• you own a property and sell it for $450,000
• the market is moving at 7% (used for example only)
• if you take 3 months to find a property from the time that your sale becomes unconditional you are looking at best at $10,000 price movement in the market whilst you are not in it
• but, whilst you do not have a property loan you are not paying interest and in fact there could possibly be some interest earned, depending on how your finances are set up
• you manage to buy a property for $350,000 that could have some renovation at say $60,000 (total $410,000) and the property ends up worth $440,000
• you still have $40,000 in the bank less legals and other ingoing costs
This example is how a buyer’s market can benefit a property investor and now is the time to take advantage of the market to do this if you have been considering it. A seller’s market is when this example will not work
Filed Under: Investment Strategies
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