Should you sell your property in Australia this year? Well, the housing market in Australia has got off to a slow start in 2016 so far, and it’s a good thing. There was a fear that Melbourne and Sydney had become too hot for their own good. So a slight dip in the market is nothing to worry about.
But if you’re looking to sell a house in Perth, Darwin or Canberra, you may have to wait a little while longer as property prices in these cities are at a real low right now. It does seem like property prices peaked in many parts of Australia in 2015; and 2016 will see the market become reasonable again.
What Australia desperately needed was some stability in the real estate sector, and that’s exactly what we are getting now. So first-time buyers, who had to put off buying an apartment in Sydney or Melbourne because of the high costs, will now want to try their luck again. There is a lot of confidence about the Australian economy and the direction in which it is headed.
For older homeowners, this presents a great opportunity to sell an existing house and upgrade to a bigger home. There is certainly an air of optimism in Australia and there has never been a better time either to buy or sell property in the country.
Overseas investors are the biggest buyers of Australian property and we see a lot of interest coming from China. Chinese investors are very bullish about Australia. The Chinese stock market crash of 2015 has, if anything, pushed more wealthy Chinese to look for safe havens abroad for their substantial investments, and Australia is just perfect in that regard.
So, how does one sell a house in Australia? One of the most common practices uses to sell a home in Australia is to set a “private treaty”, wherein the seller sets the price and invites bids from prospective buyers. Another popular method is to sell the property by auctioning it off.
Once you decide to sell your home, you will be required to hold an open day invitation for those who would like to inspect the house. A lot of people call to book a viewing of the property by appointment. Typically, all viewings of the property are taken care of by estate agents.
Auctions are generally the most popular ways of selling properties in Sydney and Melbourne. Auctions are generally conducted by a professional. You will need to set a minimum bid price for the auction, and the house will be sold to the person who makes the highest bid. It is a simple, uncomplicated process.
The final bid, once made, is legally binding on the buyer. They are legally obliged to buy the house, no matter what. However, in Western Australia and Tasmania, there is a cooling period of 7 days during which the buyers are allowed to change their mind.
It usually takes 45 days to complete the formalities related to the sale of the property. As a seller you would be worried about the capital gains tax. Now, capital gains tax will apply to the sale of your property only if it is not your primary residence or covers an area of over two hectares.
The capital gains tax to be paid depends on how long the property was held for. If you have held the property for at least 12 months before selling it, you get a discount of 50 percent on the capital gains tax. So, it is always better to hold on to a house for a year, at a minimum, before selling it.