If you have an investment property in North Narrabeen, Narrabeen, Elanora Heights, Ingleside, Warriewood or anywhere else on the Northern Beaches, you may be wondering if now is the time to sell.
Your decision of course will depend on personal factors and your specific financial situation, but this article outlines our current perspective, based on the local market and current economic conditions:
Firstly, it’s true that the Northern Beaches are evergreen. Being leafy, close to multiple beaches, stunning national parks, ample amenities and far enough from the city but not so far as to be rural, postcode 2101 suburbs provide a highly appealing lifestyle. Because of this, there will always be demand and there will always be buyers.
However, things have settled somewhat. This was to be expected after the pandemic, when average house values were jumping in Sydney by around $1000 per week. This year, prices have risen a little, but not a lot. With interest rates high and expected to stay that way, home values are not expected to take off in a big way in the near future.
Why sell now?
There are several reasons why now might be a smart time for you to sell.
Interest rates: Many Australians are looking to downsize due to rapidly rising mortgages, and selling your investment property now puts you in a good position to simplify your finances. Similarly, if you’re finding that the cost of your investment is outweighing the benefits, you might decide to have a break from the property market and put your money somewhere else.
Do your sums and figure out if your investment is really working for you. Selling now doesn’t mean you won’t buy again in the future or elsewhere.
The ‘fixed rate cliff’: Economists are warning that there may be a rush of people selling in the new year because their fixed interest rates have expired and they can no longer afford their investment property repayments. This will contribute to dampened prices (they never really go off the boil but yes, they do slow down), so it’s worthwhile getting in before we start seeing more of a buyer’s market in 2024.
Results are strong: According to figures from CoreLogic, the auction clearance rate on the Northern Beaches at the end of July was 76.9 per cent. It’s a good idea to sell now while demand is still there.
Broaden your portfolio: With the money from a Northern Beaches sale, you may have enough to buy multiple properties in other areas, or you might even choose to buy a less expensive property still on the Northern Beaches and use the remaining funds for other investments.
Guaranteed high returns: If you have owned your Northern Beaches investment property for longer than five years, you are pretty much guaranteed to make a significant profit on your initial return. If you have owned the property since before 2015, then now is definitely a good time to cash out.
Cash-ready buyers: Spring is selling season and the time when Northern Beaches really comes into its own. There is still time to get your investment property ready for an active market, and you should be out the door (figuratively speaking) by Christmas.
While buyer activity has slowed a little due to higher interest rates, many purchasers have cash, especially if they are downsizing to a smaller place. We have the advantage of people with healthy budgets looking to buy and now is a great time to leverage it.
Getting the best price for your Northern Beaches investment property
Ready to sell your investment property?
Let us work with you to make sure you get multiple offers that you’re thrilled about.