Upgraders that are waiting for a spike in the property market before selling their home could be falling into a trap, RE/MAX Western Australia managing director Geoff Baldwin has said.
According to Mr Baldwin, all indicators are suggesting the WA property market will continue to recover strongly and post steady value growth over the coming 12 months.
“When people see the market showing signs of growth the temptation is to hold off and wait for more profits however this can be a big trap if you are considering upgrading your home,” he said.
“Put simply, while you are waiting for your current home to increase in value the one you are going to buy will almost certainly be doing the same hover the gap will be widening.
“If you current home is currently worth say $500,000 and you are looking to buy a better house that is currently worth say $700,000 the gap is $200,000 today.
“However, if you wait for the market to increase 10 per cent you current home will go up to $550,000 but the better home will go up to $770,000 increasing the gap to $220,000 and costing you an extra $20,000.
Mr Baldwin said in a rising market the best advice for prospective upgraders is to take action sooner rather than later.