4 reasons why people sell their homes
Are you sitting on the fence about selling your home? There are a number of reasons why people decide to move on, but it’s important that you actually take a close look at your motivations and determine some concrete reasons for putting it on the market.
There are plenty of other people who have made the decision before you, as figures from CoreLogic RP Data show that the volume of real estate in Australia up for sale has increased substantially during September 2015.
Of course, given that it’s spring this is to be expected, but CoreLogic RP Data affirms that the number of homes for sale has increased from the same time last year.
In light of this, here are some of the most common reasons people sell their homes:
1. You can’t afford it anymore
Without a doubt the most negative justification for selling your home, which is why we’ll get it out of the way first! There are a number of unforeseen circumstances that life can throw at you, affecting your ability to keep up with your mortgage repayments.
These can include:
- Losing a job
- Falling ill and being unable to work
- Separating from your partner
- A sudden rise in your home loan rates
The Australian Securities and Investments Commission states that if you find yourself struggling to make your mortgage repayments and you don’t see the future getting any brighter, you should get out early before your debt begins to snowball.
However, despite being an undesirable situation, there can be a very positive outcome with potential profits to be made. For example, the Australian Bureau of Statistics (ABS) found that over the year to June 2015, the combined capital city values skyrocketed nearly 10 per cent. This increase in equity could certainly place you in a better position for your next step up the ladder.
2. It’s no longer the right size
As we grow, our needs change, meaning different properties are suited to separate times of our lives.
Perhaps you’ve got a new wee addition to the family, (the ABS asserts there are around 305,000 births every year) and need a bigger and more child-friendly home.
On the other side of the coin, maybe the kids have flown the coop, leaving your larger home eerily quiet and prone to echoing. Downsizing could make you more comfortable, not to mention it can free up a substantial amount of money.
3. The market is ideal for selling
If you’re still teetering on the edge of selling, a hot property market could be enough to tip you over. In a good way, of course.
The Commonwealth Bank-CoreLogic Home Buyers Index for July 2015 found that the capital city markets around Australia are largely balanced, except for Sydney and Melbourne, which are determined to be “extreme sellers’ markets”.
This means there are a lot more buyers than sellers in these areas, which can result in the price tag for your property for sale being driven up by the increased competition.
4. Times are a-changing
According to a survey from the ABS, 43 per cent of those interviewed had moved homes in the five years prior to the research.
Simple lifestyle changes can result in you wanting or needing to sell your home and move locations. Perhaps you’ve picked up a new job in a different city, you’re tired of your long commute to work or you want to live closer to your friends and family.
It can even be something as straightforward as wanting a change in your life, like a breath of fresh air from a different area.
Selling your home is a very personal decision. You should consider what is most fitting for your finances, lifestyle and future plans. Once you’ve balanced all the positives and negatives, emotions and practicalities, then maybe you can get down from your fence and list your property for sale.