Many property owners are asking the question whether they should sell in today’s market or to stay put with the option to extend and renovate.
There are a few points that need to be addressed before making such a decision as it can severely impact a person financially for the better or for worse.
Right now, it is clearly a seller’s market in Noosa and the surrounding regions. The two key indicators for this current market trend are the reduced number of properties for sale and the increased number of buyers present in the area. Sellers are putting their properties on the market and many are achieving outstanding results.
It is impossible to ascertain if the property market will be as buoyant in 6 month’s time as no one knows the future. Banks however are reporting a large increase in home loans and there is pressure to slow this down by potentially increasing interest rates. This could affect people’s borrowing power and subsequently reduce the number of buyers in the marketplace. Reduced demand reflects on property prices.
When considering to build or renovate the cost is normally charged around $1,500 to $2,000 a square metre. If an average home is around 300 sqm then a property owner can look to spend a total of $450,000 to $600,000. This money needs to be recouped when sold at a later date to ensure there is no financial loss.
If the cost to move to another house to suit your requirements is cheaper than building and renovating, then this needs to be seriously considered.
Sometimes the property owners emotional attachments and the individual property location and its proximity to certain facilities can outweigh financial concerns.
If you are thinking of selling, then consider what your focus and priority is in this current market.