This is the downturn of the property market that we had to have. Every seven or so years prices come down because what goes up, must come down.

Wait out the market

If you are thinking of selling then you would have worked out that your property is not worth what it was a year, or even three months ago, and honestly pricing will continue to go down for the next 18-24 months.

We have advised some of our clients to rent out their property and go and live somewhere they have always dreamed of living and wait out the market. We are not seeing a huge decline in the rental market like we are in the sales market. Properties that are presented well and priced to meet the market are renting quickly and to great tenants.

Waiting out the market is not a new strategy but if done correctly it can make you some great money and give you flexibility to find the right area to move to next.

Here is an example:

We have a client in Frenchs Forest on the northern beaches. Last year his 5 bedroom, 3 bathroom  property was valued at $2 million dollars. Six weeks ago he put it on the market for sale and had offers around $1.65 million. That is a difference of $350,000 and not a loss he is prepared to take. The property was then leased for $1,250 a week and they are happily living in a smaller property on the beach at Manly.

In three years time they will look to put their property back on the market, and while there are no guarantees in life, it’s a pretty safe bet to say their property will be back up around the $2 million dollar mark again, if not higher.

These clients were in a fortunate position where they could afford to do this and were looking to downsize. Their property was the family home with very little mortgage left on it. The children had grown up and moved out of home. This is not an unusual situation and a great way for home owners to test other areas where they had always wanted to live or retire to.

Upsize and take advantage of the dropping prices

If you are looking to upsize then you are in luck. If you take an average of a 10% price drop around Sydney and do your maths you are in a great position to make some easy money.

Let’s say you are selling your $2 million dollar property that is now worth $1.8 million dollars. If you are looking to buy around the $3 million dollar mark which is now worth $2.7 million in about two years that property would have regained that loss and you are up $100,000 (taking into account the loss you made on your property)

Which ever way you look at it don’t be discouraged by this current property cycle. There are always ways to look differently at your situation and work out a solution that is right for you, and will ultimately mean you can make the most out of your property.