Do you know that the Christmas holiday period is the best time to purchase an investment property? Yeah, who has the time, right? With the Christmas rush, shopping for presents and going to all sorts of Christmas-related events, who has time to sneak in a purchase of a property? Virtually all people can relate to the holiday season as the time for family, reflection of the past yes, and food!
So what makes this festive season the best time to buy?
Here are the six reasons why:
- Determined sellers
If your home has been in the market for a few months, would you really want it to remain unsold through Christmas, and then possibly into January or February? The reason why sellers put up their property for sale before Christmas is because they want it sold before Christmas.
This is a great opportunity to take advantage of this type of seller!
- No person likes tax
Another compelling factor for vendors in December is the coming land tax date, which falls at midnight on 31 Dec in NSW and Victoria. The land tax threshold covers any property owned or jointly owned on this period, so sellers who have surpassed the limit may be eager to sell quickly.
If you are seriously considering making a purchase and don’t care about the threshold, then you may have an advantage on price negotiations.
- Less competition
Other buyers in the market stop looking, which means less competition. During this time, most people are in the “deal with it later” mood. This means the property market is an “all you can eat buffet” of investment properties, and you’re one of the few partaking in it.
- Sales agents are gearing up for Christmas, too
Like other people who are rushing to complete their business before the year concludes, sales agents are also preparing to wrap up their sales for vendors. This not only benefits sellers, who can have the peace of mind knowing they have finally sold their home, but sales agents too are working to bring in those final commissions for the year.
With determined sellers, hardworking agents and keen buyers, the end-of-year deadline can deliver positive results for all parties.
- No one likes homes that are already on the market for months
Listings tend to increase at the end of January. People who had been delaying selling finally made the move to put their properties on the market. This results in new properties for people who are looking to buy.
Ask yourself, if you put a property on the market in November and it remained on the market come February and it was regarded as “old stock” in a marketplace full of new listings, do you believe this is a good thing?
The answer is, NO. For this reason, sellers are determined to avoid having their property put on the old-stock list and maximize their chances of successfully offloading their home.
- Using the terms to negotiate the price
For a majority of the people, December to January is that period when they have time. For owner occupiers who are considering to sell, this may be the right time to act. And for a person who has just purchased, the burden to sell can rapidly intensify.
With many services, such as solicitors’ offices closing, banks closed for public holidays, slowing down for the holiday season, sellers in this situation may agree to say yes to a lower price for more flexible settlement terms.
This is an advantage you would have failed to benefit from if you delayed until February to purchase.
If you want to put together a property portfolio; or maybe if you prefer to remain focused on your long-term goals; or if you want to give your family the gift of wealth, talk to a buyers agent, and allow them to do all the work for you.