Suite 16/27-35 William Street Fremantle
9433 4233Contact us
For the March 2016 quarter, statistics from CoreLogic’s latest Pain and Gain Property Report revealed that over 9% of homes resold recorded a gross loss on previous purchase price, up from 8.3% at the end of 2015 and also higher than the 8.8% recorded 12 months ago.
I like to think that isn’t necessarily a bad thing. If you have to do it.
Normally property only appreciates due to either demand, significant property improvements or increase in land values.
Here’s why it could still be OK:
1) You needed to sell: Death, Divorce, Debt – are the worse reasons to need to sell and these can often cause more than financial concerns. So doing what is necessary at the time is more important.
2) You got a bargain somewhere else: Buying and Selling in the same market generally equals itself out. You might lose a bit on yours, but if you are upgrading either by house size, or by suburb then you are probably buying well and saving as much or more than you are losing on your sale.
3) You have used the house for 1 year, 2 years, 3 years or more – so you have depreciated the asset – so it makes sense that the house at least might be worth less than what you paid for it.
4) You are moving to a suburb that is closer to schools, universities or lifestyle choices – by moving house you will be improving the quality of your life, so that will be better.
5) You are moving because your family has changed – you have gone from being single, to married, married to having children, or becoming empty nesters. These are life changes that can all be great for you.
So it may not all be bad news 🙂
If you do have to sell in 2016 for any reason please call me and ask me for help.
My number is 0431 417 345 or (08) 9330 5277 or firstname.lastname@example.org
Licensee / Owner / Sales and Property Management