Should I sell now or in 2023?

Should I sell now or in 2023?

As reported in the media after the recent OCR update moving 75 basis points (the largest move since 2009) The property market is widely expected to continue on its downward spiral into 2023. Both fixed and floating mortgage rates are expected to hit 7%. On a $500,000 mortgage this equates to an additional $12,000 a year. 
For some home owners and investors this is simply not going to be tolerable and the only choice will be distress sale. 

If this is you we strongly suggest getting out now, and we are in a postition to help you do this. 
Our job despite market conditions is to get you the best price possible. 

While we are starting to see an increase in tenant activity (enquiries, viewings) rents throughout the country in the wake of covid have on average dropped by $100 a week and they will not immediately jump back to where they were. Say you were fortunate enough to have your tenants lease ending in mid - late Jan/early Feb it is unlikely you will be able to add $100 a week and have your property rented in a reasonable timeframe, and even if you could there will still be an extra $150 needed per week to meet the expected new mortgage repayments which 20% of the country will be on. That is to say nothing of other general costs being increased due to the times. Expect power, council rates, body corportate rates, fuel and more to increase. This means the running costs of your investment properties will be going up at a disproportionate speed to income. Should things be as bad as predicted we may also see tenants begin to struggle meeting rent payments. 

The Pros Of Selling Now 
One of the biggest advantages of selling your home or investment right now is that you can get out before widely reported Media indicates things are going to go bad and while people are still managing to secure mortgages.
                                                                                    
The Cons Of Selling Now 
One potential downside to selling your property now is that it may be difficult to find a buyer quickly due to restricted lending.
While there will always be buyers in the market there will undoubtably be far fewer than the past, or even current days. It is undeniably a buyers market and will continue to be so for the near future. Lending will only get more difficult leaving just cash buyers. This means that it may take longer than it did 2-3 months ago for your property to sell at its full asking price. 
                                                         
At the end of the day, deciding when to sell is an individual decision based on what makes sense financially and emotionally for you in your particular situation.
Our honest advice to anyone feeling they are on the cusp of difficulty now is to exit the market before things get worse, and while we are fairly certain we can get you a decent price.We don't know what dollar effect the forecasted recession will have on your property but varied reports from multiple sources are all looking grim. We are telling anyone who thinks they may need to sell in the next 6 months to act now. Don't wait, let us help you while we know we can.