All About Timing.

Whether you are looking to upsize or downsize in this market deciding on the best approach for you can be tricky.

As highlighted in this newsletter recently the underlying problem is the lack of stock. This illiquidity becomes self-saucing…let me explain.

People in the past who would have readily listed their homes are now reluctant to do so because they can’t see anything for them to buy…this stand-off has created a sort of market paralysis (it’s hard to play musical chairs if no one stands up!).

So you have two options, sell first or buy first.

The major benefit of selling first is you know exactly what you have to spend on your next home. The ideal scenario is to sell and negotiate a long settlement (this means you may avoid two moves as well). The risk with this approach is that if you can’t find something suitable you may have to move twice but crucially you could also be out of the market for some time (we all know stories of woe about this). Selling first is a trapeze act, you have to let go of what you have to then go and get what you want.

Alternatively, you buy first. Again, ideally you will also do this with a longer settlement which will give you sufficient time to sell your existing home with composure. Generally, we advise clients to be conservative with their numbers when taking this route. Oddly enough there is risk associated with being too conservative and underbuying (I’ve done this). This is when you underestimate your sale outcome and buy on that basis….then you sell for more than you expected and you could have bought a better property (commonly referred to as a first world problem).

Ultimately the risk mitigator is time, a long settlement when selling or buying will help your cause.

Tomorrow marks the final day of the selling season for the June quarter, we are proud to be bringing 39 Cabramatta Road, Mosman to auction tomorrow at 1pm - you are welcome to come along.

Until next week,

David Murphy