Despite spring being just around the corner, CoreLogic data shows that the number of homes listed for auction is the country are around 20 per cent lower compared to the same time last year. The disparity between the low supply and still high demand in property markets across Australia presents a valuable opportunity to those who are considering downsizing.
According to chairman and owner of Century 21 Australasia Charles Tarbey, there are many good reasons why property owners should consider downsizing. A large home may be exceeding their needs, especially as their children grow up and move out. Downsizing can also free up some cash to purchase a new investment property, especially if they are selling in an area where stock levels are low.
"For those looking at selling up and buying in the same area, this could present a struggle if there is not much stock available. However, if you are considering selling to downsize and relocate to a new suburb, or even state, you may find yourself in a better position," Tarbey said.
Apartments are also an appealing option, considering their small size, easy maintenance, convenience, and amenities. With the number of unit construction in Australia reaching towards record highs, it is not difficult to find one that best suits a buyer's needs.
However, Tarbey advises careful assessment of unit purchases.
"It will be crucial to weigh up the prospective location and the level of supply in the area, as well as local amenities and any future changes or planned infrastructure," he said. "This will help to evaluate whether an apartment purchase may be both a good option for downsizing and a good investment."
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now