The Latin root of hesitation is haesitationem, which means irresolution or uncertainty. When we are faced with big decisions, such as purchasing a property, it’s not uncommon to pause and question our certainty on whether now, is the right time. But what if hesitating meant that your dream of owning a home in Byron Bay became a question of now or never?
The accuracy of media headlines is questionable, and the deceivingly dramatic headlines could be confusing buyers. The news often generalises real estate in Australia as one big composite, when in fact neighbouring suburbs and even from one side of the street to the other, can differ significantly. If hesitation is the reason for delaying your dream of living in Byron Bay, then we want to make sure you have all the pertinent information relating to the local market, so that you can feel confident and assured in your decision. In this month’s blog, we explore why hesitation could set you back in more ways than one because when it comes to owning a slice of paradise, there’s not a second to lose.
Time in, Over Timing the Market
Time in the market is more crucial than timing your actions based on the market. Why? … Once you are in the market, you begin building equity, as typically properties appreciate over time. This enables you more leverage to expand your property portfolio and put you in a great position to sell and buy again if you desire. And more to the point, once you are in the market, you get to enjoy all the wonderful aspects of owning a home in the place you love. Timing the market is tough, and even with years of experience, you can get it wrong. If you are trying to time the market yourself, the best option is to time buying and selling within the same market. The gain or loss you make on your property, you’ll gain or lose on the next one. For example, if you sell in a high market, the profit gained becomes equity on the property you buy next within that same market. You are re-investing the profit back into the market, into something that has the potential to appreciate. If you sell in a high market, you may not come across a ‘low market’ in the area you want to then buy in. Therefore, the knowledge of a local agent is vital.
A trusted agent will be able to clearly communicate the trend of the local market, and help you plan a selling and buying timeline that works in your favour.
Follow the Experts
Astute investors are making moves now. Buyer hesitation is cultivating an ideal time for investors to swoop in and purchase whilst competition is low. Australia’s No.1 property developer and astute investor, Harry Triguboff has announced that he will be increasing his property portfolio by 15% this year. With media speculation of an economic crash, the question is, why would he buy now? If he waits, maybe he will get a better bargain. The key word here is ‘Maybe’. The future is uncertain and even with a crystal ball, nobody really knows what the future is going to bring. A perceptive investor like Triguboff only knows the facts of today and the past. The return on investment of time in the market can take some years, but you are more likely to reap the benefits of owning property than sitting on the fence and missing out on building capital. As one of Australia’s richest people and a billionaire in real estate development, Triguboff’s track record speaks for itself!
Benefiting Both… now.
Talking of swooping in, right now is a great time to be buying or selling. We’re going through a typically quieter season in Byron real estate but across the country too. People are comfortable staying put in the colder months, so there is generally less movement going on. Though, the current market is creating brilliant opportunities for both the vendor and the buyer. For sellers, there is limited stock of A-grade properties therefore listing your home whilst competition is lower can make it stand out even more. Purchasers aren’t overwhelmed at a large pool of properties and can easily find that hidden gem… or not so hidden should we say. Furthermore, the current market is ideal for ‘off-market’ sales. An agent with a database of buyers primed to purchase and ready to move could save the vendor time and money, removing advertising and the hassle of home-opens out of the equation. Meanwhile, the buyer is benefiting from less competition against their offer; fewer buyers means more chance that your offer will make it to the top of the list!
The Danger of Waiting
Waiting for a “perfect” time could mean waiting for a long time, and time is money. We should never take any prediction of the future as gospel, but when it comes to property prices in Byron, we can tentatively use history to make an educated guess. We know Byron Bay has a recent history of growth in population, economy, and of course property value. Pre-2017 prices remained steady without major fluctuation either way though it’s fair to say a lot has happened since then. The table below indicates the general direction median house prices in Byron have followed in the last 5 years.
You can see prices minorly dipped from 2018-19, however, the spikes from 2019-20 and 2020-21 were significantly larger in comparison. Though the growth coming into 2022 has begun to slow down, can we say that the upward trend will drop as the media ruminates? With Triguboff leading the way, the only thing we do know is what the market is doing NOW. Acting on what you know today is the best way to make an informed decision. With tangible facts and help from your local industry experts, you can find the right property at the right price, whether you are buying or selling.
Fear of “over-paying”
Unfortunately hesitating over the fear of “over-paying” in Byron, could leave you with no choice but to pay more down the line. Referring to the graph, we can see that prices have predominantly been on the rise and there are several reasons why this could continue, albeit at a slower rate. With no land available for further development, the average house price isn’t going to suddenly decrease due to an increase in supply. The demand will remain high and will continue to remain high. Prices in an area offering unparalleled lifestyle and luxury to the calibre of this township are naturally going to appreciate. This brings us back to the advantage of time in the Byron market than timing the market.
“It’s only expensive the day you buy it” - Retired Real Estate Agent of Byron Bay
Right now, motivated vendors are aware of the need to be realistic, but after bushfires, a global pandemic, and flooding hit us all by surprise, we don’t know what potentially inflating event is around the corner to cause more demand.
Living for the day
We appreciate that finding the right property can be easier said than done. And in some cases, individual circumstances may mean that buying now is not the right time. Our agents are pragmatic in their approach to your property search and selling journey. If a property has caught your eye, it is likely that other investors have seen it too. We highly recommend acting with haste if this is the case. As mentioned, there are limited A-grade properties at present, and whilst the market is quiet, it harvests an ideal chance to get a foot in the door (quite literally). Besides the amazing long-term investment, the sooner you buy, the sooner you can start living your dream in a beautiful Byron Bay dwelling. As the proverbial saying goes, there is no time like the present, and there is no better present than a home in Byron Bay.
Written by Kerry Mullany
Photo credit: Saxon Kent - @saxonkent
