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It was a busy weekend with a few home opens and appraisals. To be exact, I have conducted 18 appraisals in 3 weeks. What a number!
I have a lot of discussions with the local home owners and yes a lot of people are looking to sell and buy at the same time.
However, do you really save more money by selling and buying in this market? And if so, how much will you save?
Perth real estate market has been declining since March 2015 and we have observed an approximate 5-10% drop in selling price. So it is a good market to buy as we have hit the bottom.
So this is how you will save: Assume that house price has dropped for 10%
If you sell in 2014-2015
Your house worth: $650,000
Your next purchase worth $850,000
You need to pay $200,000 for the shortfall
If you sell in today's market
Your house worth: $585,000
Your next purchase worth: $765,000
You need to pay $180,000 for the shortfall
So you have SAVED $20,000
So if you are looking to sell and buy at the same time, in today's market you are doing the right thing. With low interest rates, you may save more in the long term.
Ernest Ng. WA's Licensed Real Estate Agent. MARA's Registered Migration Agent