By Guest Blogger, Leanne Pilkington, CEO,
Laing & Simmons and Immediate Past President REINSW
It’s often said that buying or selling a property is among the biggest financial decisions we’ll ever make. At the best of times, it’s a decision which demands extensive consideration. In 2023, though, there are seemingly even more variables at play: rising interest rates, cost of living pressure, surging migration, changing demographics, new ways of working and in NSW, the pending election. So should you buy or sell this year? Laing+Simmons CEO Leanne Pilkington cuts through the noise.
In buying or selling a property, to get the timing right, focus less on the timing. It sounds contradictory, but the key variable is you. Irrespective of what’s happening in the market, your circumstances and your needs are the key driver.
The best time to buy a property is when you find something that suits you. This means from a lifestyle and family standpoint, taking in financial considerations, and understanding what you need from a property today and tomorrow. When you find something that suits you, you can make the timing work.
But don’t over-extend. A property out of your reach, which would - or could - cause you financial discomfort, by definition doesn’t suit you. When looking, ask yourself whether the commitment required to secure the property is something you’ll be comfortable with over the long-term.
It’s not about trying to pick the right time to buy in the hope you get it right, it’s about being sure what you pay is something you can live with over time.
Trying to pick the bottom of the market is fraught with danger. Just like trying to pick the top of the market is not a great strategy for vendors. In deciding to sell in order to buy something else more suited to you, it makes more sense to focus on the change-over gap instead of the price you are buying or selling for. This is the cost to you in real terms.
‘Do your research’ is a common piece of advice, as it should be. Price movements, suburban market trends, auction clearance rates, rental vacancies and other indicators are worth investigating. Among other places, this information can be accessed through the media.
But you need to maintain perspective. Headlines are meant to generate clicks. They don’t always paint an accurate picture as it applies to the specific local market you’re looking at. Local agents with local experience can give you a much clearer insight into the actual suburban market performance at any given time.
And at this point in time, every suburban market is experiencing different market conditions. In NSW, the only common theme is a shortage of property. Despite recent price movements, this is a point worth remembering for vendors.
For buyers, looking for property is a challenge at the moment. Assembling a team can help. A relationship with a buyers agent can make all the difference and give you a competitive advantage, as they will have access to properties before they hit the market.
With so few properties available, buyers should leave no stone unturned in their search. From there, it’s about asking ‘does this suit me?’.
If the answer is yes, then congratulations on getting the timing right.
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