01 Dec Should you buy property in the weeks leading up to Christmas or wait until afterwards?
At the moment the Australian property market is so hot in the capital cities, that people are afraid of missing out. They’re worried that if they delay by even a couple of weeks they may end up losing their only chance to buy a property. The answer will naturally depend on which side of the fence you are on. Are you a buyer, or are you a seller? If you’re a buyer than you may find it’s the perfect time to enter the market because everyone is rushing to get things wrapped up before Christmas, however if you’re a seller, you may be worried that you’re not going to get the best deal for the property.
From a buyer’s perspective, if you’re looking to buy before Christmas then the power is in your hands because you may have come across a seller who wants a fast settlement. That gives you greater negotiating power and it may be easier for you to negotiate a good price. News.com.au says that buying before Christmas could potentially save you thousands of dollars. This is because it would appear that sellers before Christmas are willing to negotiate on price than they would under normal circumstances, and as a buyer, that gives you greater power. You could find yourself saving up to $50,000 if you settle before Christmas. This is just an assumption, but the reason could be related to the psychology of having the money in their account before Christmas.
Now this next one seems kind of counter intuitive, but News.com.au says that vendors don’t want their property competing with others in the new year. From a buyer’s perspective though, you’d be better to wait until the new year when there is a lot of competing stock. This is basic supply and demand economics that the greater the supply the lower the price, and the lower the supply, the greater the price.
If you’re a seller you might want to hold off until after the Christmas break to list your property. You’re not likely to achieve the best result when selling if you list this close to Christmas. This is because right before Christmas, the property market very much favours buyers, and you might find that people are delaying a new property purchase until the new year when they really have time to consider things. Property isn’t something that you should rush into. You just have to look at all the deceased estates or mortgagee sales to realise that fast sales are never a good idea.
When you’re selling, you also need to consider what you’re going to do once your property has sold. Are you going to rent for a while, or do you plan to buy again? What is your budget if you do plan to rebuy? It could be that you’re better to sell when you know you’ve got another property to go into, or when you have a budget in mind.
You’d also need to look at where your property is. Some suburbs have a permanently “hot” market, so it is always a good time to sell. This is particularly true of inner city suburbs and those close to good schools. It really depends on the price you want to achieve as to whether or not you should opt for a fast sale, or wait until after Christmas and take your time.