Is it time to cash in on the property boom?

Is It Time to Cash In on the Property Boom?

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance) wrote for The Western Weekender in March 2021, offering practical guidance to property owners considering whether to sell and upgrade during a period of strong price growth across much of the country.

After fears at the onset of COVID-19 that property markets would fall sharply, Australian real estate had instead entered boom conditions, driven in large part by record low interest rates. For homeowners thinking about cashing in on those gains, Mark outlined some key fundamentals that still applied regardless of market conditions.

Maximising the price achieved at sale starts well before listing day. Basic maintenance, decluttering and improving the presentation of outdoor spaces can all make a meaningful difference. At the same time, ensuring any renovations or improvements carried out on the property are council-approved matters more than many sellers realise. Online property portals give buyers easy access to price history and automated value estimates, which can create a misleading picture if a property has been significantly improved since it was last on the market, making it worth getting a proper appraisal from a real estate agent to establish a realistic and well-supported price expectation.

The valuation itself also has real financial consequences beyond the sale price. A strong valuation can eliminate the need for lenders mortgage insurance, unlock access to better mortgage rates, and increase the equity available to leverage into an investment property. Mark drew the comparison clearly: a good property valuation is as valuable as a good credit score and can translate to tens of thousands of dollars of difference in the financial outcome.

Even for owners not planning to sell in the near term, keeping a property well maintained protects both its current value and its future potential.

Thinking about selling, upgrading or leveraging your equity? Contact Evolve Lending & Finance to understand your options.