Top 5 Reasons Why Property Owners are selling in 2023.
Home Owners have approached us about Selling their Properties. Below are the top 5 reasons consolidated.
However, no doubts rising home prices, higher mortgage loans, and more stringent loan eligibility (55% TDSR) are a result of some factors, both financial and personal, before putting your home on the market.
It’s also important to ask yourself whether you’re ready to move and if you’ll be able to find another home that fits your budget.
Why Property Owners want to sell in a window period– Ending Low-Interest lock-in Period
If you’re still locked into a mortgage at a rate significantly lower than the current rates, you must take action soon!
Take, for example.
$1,000,000 Loan 20 years with 1.5% Interest = $3,575.45 (P) + $1,250 (I) = $4,825.45
$1,000,000 Loan 20 years with 4.5% Interest = $2,576.49 (P) + $3,750 (I) = $6,326.49
The difference in interest = $2,500 per month.
($3,750/$1250, X3 times Higher than previous)
The difference in instalments = $1,501 per month.
($1501/$4825, 30% Higher than previous)
Why Property Owners plan ahead for selling — properties taking a Longer time to Sell. Why?
Property stuck with an existing rental contract.
Current Home Buyers are less forgiving in buying a property and need to wait for anything more than six months generally.
We identified this gap and offered to help property sellers to negotiate with the existing tenant to terminate prematurely for a set of agreed terms.
More Sellers in the Same Development of Vicinity is Selling. Creates Price War
The last transactions done for most condos or landed in the vicinity are record high.
More of the Sellers are aiming for a higher price which the home buyers are less motivated to chase and instead choose to wait.
“It’s a no-brainer to sell if you have somewhere to go, especially in a hot seller’s market.”
Why Property Owners wants to make the switch – Downsizing
Downsizing can be more cost-effective than maintaining a more significant, more costly home.
Reality kicks in when you no longer need the swimming pool and function rooms you have never booked or with minimal usage.
Multi-Storey Landed property that you no longer enjoy climbing the stairs like before when your spacious property allows you so much clutter over time.
Why Property Owners wants to cash out – Migrate / Reinvest in Overseas Property
If you need to migrate, enjoy your retirement in a new area such as Australia or Canada, you need the profits from the sale to put toward your next place;
Selling would be a better option than renting the next home. Some would be making the sale to fund for the children’s education for overseas studies.
Lesser Buyers. (Buyers Being Priced Out of the Market)
With more than before uncertainty, the current situation makes it advantageous for sellers to sell their homes as soon as possible. Despite the increasing interest rates, selling your home at this point will still be profitable.
If the interest rates for homes go up significantly, it could lead to fewer buyers being interested in purchasing a home.
Conclusion -Top 5 Reasons Why Property Owners are selling in 2023.
Selling a house is about more than just making money.
Other factors that may be neglected other than costs and expenses when you sell are associated with selling a house.
We should not neglect the emotional uncertainty of a new environment, amenities and habit changes, and one may adapt to the changes for future planning. Moving of house can be stressful, and less talk about making the sale adds stress when strangers visit your home and make the different type of comments and questions.
Let us go through the entire process with you at ease.
“The time to sell is when you need to sell,”