How the Latest Property Prices Impacts Your Financial Wellbeing

Its boomtown time again. Sydney’s average house price has soared through the $1 million mark for the very first time with home prices rising by 8.4% during the June 2015 quarter according to the Domain House Price Report. We’ve surpassed median prices in London and are just a smidge away from New York! While this seems like great news for homeowners, we like to err on the side of caution during real estate boom times. Remember there is a bubble and bubbles burst. If you are a home owner or renter, the latest property prices can impact other areas of your financial wellbeing. The key to success is to be measured and smart with your financial decision making. Don’t get caught up in the real estate craziness. Look beyond a year and consider how decisions you make now will impact you long term. Here is some of our advice around keeping your financial wellbeing on track while everything is going crazy around you. 1. Don’t get caught in the sell sell sell trap Real estate agents are knocking on doors in Sydney asking people to sell their homes. And yes, you WILL get a good price but remember you have to buy in this market too which means buying a potentially overpriced house in a boom market, moving costs and outrageous stamp duty. If you’re thinking of moving interstate or to the country, it’s a different story. But don’t sell your house if you can’t afford it. 2. Cater for future interest rate rises If you are buying a property in this market, do your sums on your mortgage...