2012 will be a year of increasing growth in the property market however upgraders should take action in the short term rather than waiting or risk paying more, according to RE/MAX WA Managing director Geoff Baldwin.
“All indicators are pointing to the Western Australian property market beginning a steady recovery and for prices to rise steadily during the next 12 months and beyond”, Mr Baldwin said.
“Since the beginning of Spring we have seen significant increases in buyer activity and this is starting to reflect in increased sales volume.
“When people see the market showing signs of improvement the temptation is to hold off and wait for more profits from your current home however this can be a big trap if you are considering upgrading.
“Put simply, while you are waiting for your current home to increase in value the one you are going to buy will almost certainly be doing the same however the gap will be widening.
“If you current home is currently worth say $500,000 and you are looking to buy a better house that is currently worth say $700,000 the gap is $200,000 today.
“However, if you wait for the market to increase 10% you current home will go up to $550,000 but that better home will go up to $770,000 increasing the gap to $220,000 and costing you an extra $20,000.
“In a strengthening market the best advice for prospective upgraders is to take action sooner rather than later”, Mr Baldwin said.