Significant influx of properties hit the market

Property buyers have “lots of choice in this year’s spring selling season,” according to Ray White Group Chief Economist Nerida Conisbee.

Ray White, which has close to a 15% share of the real estate market, has recorded a significant influx of new listings.

Ms Conisbee said all states had more listings now than the same time the year before.

“Why are so many people wanting to sell their homes? It is likely to be a range of factors, and not just driven by market strength,” she said.

“We are continuing to see very strong price growth in Perth, Adelaide and south-east Queensland, and opportunities to take advantage of this momentum is likely a driver in these areas.

“In Melbourne, prices are stable but there are additional taxes that have been put in place targeting investors, which have made owning a rental property less attractive.

“In Hobart, prices are now falling off the back of very low population growth which may also be encouraging people to market.”

Bridging loans explained

If you’re planning to list your property, and you’d like to buy your new home before selling your current one, you might want to consider bridging finance.

A bridging loan is a short-term, interest-only loan that provides the finance you need to buy before you sell.

Here’s how bridging loans work:

• You initially have two loans — your original loan plus your bridging loan.
• During the bridging period, you pay interest-only with both loans.
• Once your original property is sold, the proceeds are used to repay your original loan.
• The bridging loan is then transferred to a standard mortgage, generally with a principal-and-interest repayment structure.

The bridging period generally lasts between six and 12 months, although some lenders offer longer bridging periods.

Contact me if you’re thinking about buying before you sell. I’ll provide more detail around how bridging loans work and also discuss the pros and cons with you. If you decide to proceed, I’ll be happy to manage the application for you.