Want to upgrade? This cooler market could be the key

The Australian property market has seen house prices drop over the last 12 months. Selling in this market might not seem ideal, but it could boost your buying power if you are looking to upgrade.

Balance the equation

If your ideal sale price is $500,000, you may only get $450,000 factoring in a 10% drop in value. However, if you’re able to negotiate a lower price on your next property, you could still end up in front.

Say your dream home is on the market for $800,000. Its selling price may actually be closer to $720,000. Though you may have lost out on your property’s sale price, you’re still ahead by $30,000 by upgrading.

Think ahead

To benefit from this opportunity, you may want to consider seeking pre-approval or bridging finance.

Both options will allow you to jump when the perfect property hits the market – regardless of whether you buy or sell first.

If you decide to buy first, be careful of feeling pressured to accept a lower price in your sale to seal the deal.

Selling first could mean you’re rushed to purchase, so it’s important to have a plan and stick to it.

Ask the experts

Having your finances in order is a distinct advantage when negotiating the purchase of a new home. Contact a Liberty Adviser today to upgrade with confidence.