- Posted By Jasmine Adams
Whether you’re considering buying your own home or investment, purchasing at the wrong time can directly affect your overall profitability. While purchasing in a rising market can influence your outlay, selling in a slowing market can also diminish your returns.
When is a good time?
Knowing where the property market sits is imperative in helping minimise your risk. Consider the main factors that drive the property cycle including interest rates, your local economy, consumer confidence, supply and demand, vacancy rates and demographics.
The mining and resources sector, as well as tourism, are key influencers in Broome’s economic market which have a direct flow on effect to property. With announcements including a start-up and of several major mining projects, significant spending on community infrastructure, and the construction and operation of a proposed Kimberley Marine Support Base, we are feeling very confident in the future of Broome. This is also coupled with an improving tourism outlook with new competitive airfares, the potential for international flights and the lowest vacancy rate we’ve seen in years.
Generally speaking, property cycles consist of four main phases:
- Opportunity Phase – as it sounds, a great time to buy because everything is on the upward swing but also very hard to spot until in the next phase
- Growth Phase – sees property values rise as people see value and opportunity.
- Peak Phase – when things feel the most hectic – investors flood the market trying to benefit from increased values.
- Correction Phase – sometimes prices drop, other times they may just stabilise. Banks tighten their lending making it more difficult to obtain.
Now may be a great time to find out where your home fits into the current market? For an up to date opinion on the value of your home click here.
Given that property cycles often occur at a suburb-by-suburb level, thorough research into market trends in your area is imperative. We make this very easy by providing a complimentary market place report on a quarterly basis.