Timing is everything with an investment property sale

If you have an investment property, you might have been toying with the idea of putting it on the market. Especially if you’re a little financially stretched right now and the sale of the property could alleviate some of your financial stresses. But, is it a good time to sell?

More price rises are predicted in 2024 for the Sydney property market

You might be surprised to learn that property prices in Sydney hit a record high in November last year. In fact, on average, house prices are around 8.3 per cent higher than what they were a year ago.

This goes against what many predicted at the start of 2023 – a drop in property prices due to the increases in interest rates and housing affordability being out of the reach of many.

But, the experts are predicting that prices are going to continue to rise by between 2 to 5 per cent in 2024. This would indicate that, if you plan to put your property on the market, you are likely to reap a nice profit.

Demand for available properties is high

Currently, there is a lack of available houses for sale, so more buyers are pursuing the same properties than ever before. This housing shortage is due to a lack of new homes being built in recent years. Plus, the price of building has skyrocketed thanks to material shortages over the last couple of years and costs of materials constantly rising.

The market won’t be slowing for a few years yet

The only way to stop house prices from rising is for supply to go up. This means that a lot more houses have to be built but this will take quite some time, especially with interest rates being where they are.

Even though the federal government has promised that 1.2 million new homes will be built over the next five years, it’s unlikely that the effect of increased supply will make any difference for the next year or so.

Mid-year tax cuts may increase demand even further

The government promised tax cuts for high-income earners will come into force in the middle of the year. This means that those in higher income brackets will have more money in their pocket and may consider putting these extra funds into property.

The cost of rent is pushing more buyers into their first home

Thanks to the interest rate hikes we’ve seen, the cost of renting has increased dramatically over the past 12 months. This means that those currently renting are looking at the options available that may help them to purchase their own home.

There are plenty of government incentives available to these prospective buyers to make the transition easier. This means that your current investment property may well be snapped up fairly quickly and for a good price.

Plus, there’s no sign that there is going to be any relief soon when it comes to both rental price rises and the availability of rental properties. This means that more buyers are likely to flood the market over the coming 12 months or so.

Thinking of selling? Talk to us

If all of this news has encouraged you to consider putting your investment property on the market, don’t forget about how capital gains tax might affect how much money you’re going to end up with.

Why not get in touch with us to discuss the current market trends around Neutral Bay and what you could expect to sell your investment property for? This will give you a good idea of what to expect so that you can do your sums and work out whether selling is going to help boost your finances in the current economy.

We’re always happy to discuss the possible sale of your investment property and can advise you on how you can get the best price possible. Give us a call today.