There is a saying that the best deal is one where everyone wins. A buyer pays less than their maximum, whilst a seller gets more than their minimum (though neither would tell the other that).
Its worth remembering though as we come into the New Year and a time of reflection, that quite often property doesn’t work for all parties and there can be a “loser” in the equation, even if the maths sometimes takes a while to make itself known.
The GFC left lots of unintentional losers, particularly in our neck of the woods and for anyone left holding the bag after a purchase in the heady days of 2006 and 2007. Starting my career a decade ago, a majority of my earliest sales were either on behalf of banks or on behalf of those trying to keep the banks from taking over. One particular sale will forever come to mind as an investor sought to offload a unit they had bought off the plan at a near 40% discount to what they had paid. They were actually happy to cut their losses on that one as at one point prices were 60% down. Even today that same unit is still far from hitting its original sale price.
This latest period of growth has allowed for an overdue catch up in our market, and prices in the black for the first time in a long time. 2021 and 2022 saw a lot of long term owners taking the opportunity to cash out – either making hay or seeing a rare opportunity to exit square. There are others though that will still find themselves underwater when the pennies are counted.
I would think that there are a number of sellers (or potential sellers) across the southern states contemplating where they sit in the spectrum, particularly those caught up in the headiest of activity in the Capitals – where prices have now pulled back. Long term those markets tend to forgive a lot of sins of financial exuberance but there will be those caught by timing that will see money lost – and money gained for those on the other side of the transaction.
There unfortunately remains no crystal ball, no matter how nicely I ask Santa (and believe me, I have asked) but as always, early and appropriate advice, and a safety buffer in any investment will do more than the alternative.
2022 had plenty of surprises, but with inflationary pressures predicted to ease, here’s to more positive ones this year!