When Is The Best Time Of The Year To Buy Or Sell Your Investment Property?

Hello. My name is Ben Everingham and today we’re going talk about when is the best time of the year to buy or sell your investment property. G’day my name is Ben Everingham and I’m the director here at Pumped On Property. We’re a buyer’s agency and today we’re going to talk about when is the best time of the year to actually buy or sell your investment property? The reason we wanted to create this video for you today is because there’s so much myth and mysticism surrounding when the right time of the year is to actually buy or sell property in Australia. I wanted to cut straight to the core of the conversation. I’ve done some research and I’ve also pulled together my own thoughts from my team and I, who have bought over $50 million dollars worth of property in the last couple of years, for investors throughout Australia.

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We’re going to talk about two things. The first thing I wanted to talk about is when is the actual best time of the year to sell your investment property? For those of you looking to sell and getting ready to sell your property, everybody in Australia says that spring is the best time to sell your investment property but I don’t buy it. The reason I don’t buy it, is because there’s something in the property industry that you’d be super familiar with which is supply and demand. Basically the higher the supply the lower the demand. The higher the demand generally the lower the supply. In spring because everybody thinks that that is the best time of the year to sell your property and everyone’s just came out of a long winter in the southern states and out of hibernation and now they’re ready to do something with their lives again.

They get their properties ready to sell, but the problem is everybody else in the area gets their property ready to sell as well. All of this inventory, all of these properties come onto the marketplace at one time, which causes an increase in supply which means people can be more picky. Properties can sit on the market for longer before they sell. Generally the rule of thumb in real estate is if a property is sitting on the market for any more than 30 days you’ve lost your prime selling opportunity to get the property sold at the highest possible premium. Some of the good times of the year to sell your property are in July because it’s a new financial year and because people have their tax returns back and they’re mentally ready to make another decision.

Listing a property in July can be a really interesting time of the year because again, people have that money. People are ready to consider property and do things again. There’s not this massive amount of property because obviously in Australia it’s the winter time of the year when most people aren’t seriously considering doing anything for a couple of months. School holidays are also a fantastic time in Australia. Particularly in your own occupied orientated communities because it means that mom and dad have more time, where they’re not trying to wrangle the kids and chase the kids around and ferry the kids around to sport and day care and school, to actually go out and inspect property. School holidays or preparing for school holiday time can be a great time to sell a property.

Winter can be a great time of the year as well. Again, just because of that demand and supply conversation we just had. Obviously in winter there’s less listings which means agents are one, more motivated to sell because they’re not getting their easy sales that they’re getting throughout the rest of the year. There’s just less stock on the market so people have less to choose from which means when they fall in love with your property they might be in a position to actually pay a little bit more for it because there’s nothing else like it on the market. According to a survey or some research that Real Estate Investor did between 2000 and 2009 the absolute best time of the year to sell a property or when the most properties in Australia were sold was actually in March. 9% of all properties, according to that survey between 2000 and 2009, were actually sold in March.

Again, take this with a grain of salt. It really depends on the type of property you’re trying to sell and the right type of property with the right listing agent is always going to sell for a premium dollar if you know what you’re doing and you’re marketing it right. These are just some of the insider tips and tricks. In terms of buying because I’m a buyer’s agent, I’m not a seller’s agent, these are the things that I’m most interested in. How do you buy at the right time of the year to buy below market value and to not be fighting people off and having that supply and demand conversation? I find one of the best times to buy is June. Just at the end of the financial year. Because there’s people that have tax issues and they might want to sell off a property. There’s people that are in financial hardship at that time of the year having to come up with tax bills or maybe their businesses didn’t do as well as they thought they would so they need to release some cash.

I find that at the end of the financial year can be a very strategic time of the year to buy. My favourite, favourite times of the year to buy personally, although I don’t always do this for myself because again, great value properties can be bought at any time of the year but the months in between November and January can be traditionally very good to buy. The reason November and December are good is because most people start winding down. Mentally they don’t want to make a decision to buy a property at that time of the year. They’re in holiday mode. They’re thinking about Christmas and it’s been a big year. They’re worn out. Firstly you’re not competing with as many people from a buying perspective. Secondly people that sell properties or that list properties in November or December are generally more motivated to sell the property because they want to get rid of the property before the end of the year so that they can move onto their new property in the new year.

Many people that actually sell their properties in November and December are selling them because they’ve already bought something else and they need to release the funds from over here to put them in over there. It’d be an extremely good time of the year. January is great because most people in Australia are still in holiday mode. I find actually that in January we can sometimes buy properties for up to 10% less than we can in March. Timing of the year can be really, really important, especially in the right market. While this only happens once every three to four years, a federal election is dead-set the best buying opportunity outside of a global financial crisis in the Australian market. That’s because for some strange reason every election people just shut down and they stop doing anything because they’re scared that this new government is going to come in and it’s going to change something in their life or their business or their investments are suddenly going to be affected.

What I’ve learned from going through a few of these cycles is that because no one’s buying you can get absolute steals on properties. We’ve just gone through a federal election and our clients have made an absolute fortune because of it so I look forward to every election cycle. Nothing actually changes because both political parties in Australia are almost the same but what does change is the psychology of people for about the three or four months leading up and you can get some cracking deals. Spring is obviously a great time to buy because there’s extra supply in the market place which means you can pick and choose and there’s always going to be someone that’s motivated to sell.

Then I suppose, I just read this little article. It was by some guys in America and these guys are so bloody extreme, these buyer’s agents over there. They said the two top days of the year to buy a property are Easter Sunday and Christmas Day. Whether you agree with it or not, I’m not sure how I feel about what I just read. It kind of made me feel a little bit sick. I don’t know if I’d be working on those days but the reason they said that these days were good is because people’s spirits are so high, people are just in that festive state and in that spirit. Everything’s good for the person that’s selling the property and if they get an offer they’re more likely to reduce their price because when you’re feeling amazing you’re more likely to say yes to things. Take that with a grain of salt. We’re definitely not the buyer’s agent that’s going to be buying on Christmas Day or Easter for you but maybe if you go to America in the next financial crisis and you find somebody over there trying to do a deal on Christmas Day that’s the reason they’re trying to do it for you.

I’ve got a couple of other things that I wanted to talk about. Because obviously, the stars don’t perfectly align all the time for selling or buying property in the months that I just mentioned. If you’re deciding to sell in Spring I think some tips that I found in the past from selling property myself is to make sure the property is nice and open. That spring air, that fresh air & that breeze is coming through the property. To get the yard and the outside of the property looking great because again, people have just come out of hibernation and they’re ready to go forth and go back out into the world. They’re mentally preparing for spring and summer and visualising themselves living in that backyard or that front yard and making the most of it. If you’re going to sell property in summer make sure you get the air conditioner and the fans cranking at least a couple of hours before you start showing people through the property so that it’s got that cool relaxed feeling.

Probably show the property or have the inspections in the morning when it’s a bit cooler because you don’t want people put off, especially if your property isn’t orientated in the right direction and it’s extremely hot in the afternoon from that western sun in parts of Australia. Lastly there’s winter so if you do decide to sell your property in winter in Australia depending on where in Australia because it’s such a big place, the top of Australia can be very, very warm at that time of the year still. But if it’s in one of the southern states just make sure it’s got that warm cosy inviting feeling. Maybe cook something beautiful in the oven so that there’s that smell, that homely feel. Maybe chuck on some coffee so there’s that roasted coffee smell. These are just some little insider tips and tricks at the different times of the year to sell your property effectively.

To finish up today’s video, obviously it really depends on the marketplace that you’re targeting and the type of property that you’re looking to either buy or sell. Which comes into play with how much or what time of the year you should be buying or selling. The reality is there’s bargains to be had all year around if you take the right approach. If you’re selling a property make sure you jump on RateMyAgent or OpenAgent, identify the three top performing agents in your suburb and make sure that one of those top three agents is the one selling the property for you. If you’re buying make sure you do your research on the suburb. Make sure you understand the sales history in the area. Make sure you know what it is that you’re buying and the motivation behind the person selling. The motivation of the agent, so that you can get the best possible outcome.

Thank you so much for sitting in on today’s video which is when was the best time of the year to buy or sell an investment property in Australia. Until next time. Stay hungry.

Ben Everingham

About

Ben founded Pumped On Property after building a multi-million dollar property portfolio over a 5 year period. His mission is to show you how to replace your income through property investing so you can do what you love…full time.