Be ready to sell

Press, 8 January 1980, Page 11

Be ready to sell

LOOKING AT REAL ESTATE

By the Real Estate. Institute ;

There seems little doubt in anyone’s mind that ownership of real estate is the best possible hedge against inflation; but, while most private home owners acknowledge this, for them the most important factor is generally the security they have. Many people buy a house with the idea of making it a home for life but circumstances change, new living conditions arise, such as the advent of children, and a change of home is necessary.

Some people change homes several times. The average New Zealander buys and sells his home

The reasons for change are as diverse as life itself. Frequently the change is brought about by a transfer to another city in which case a sale may have to be made in a hurry.

' In these circumstances it is essential that the

three to four times in a lifetime.

home itself is kept in the very best condition possible.

It is difficult to upgrade in three or four weeks a home that has been allowed to deteriorate badly,,especially when the vendor is having to make a more hurried shift than usual. Maintenance is also essential for the protection of the asset.

A prominent Auckland property financier believes the only way to realise the value of the asset held by the private homeowner is to keep the property no more than two years. In that time it should be improved and sold, and the equity used to buy another home for which the buyer could borrow the maximum amount available to him.

He should also try to get a property which can be improved by decoration and minor alterations. The financier believes that the best capital ap-

predation is on higher priced homes and an enterprising buyer will trade his way into such a property in somewhere between seven and 10 years.

There are other economic considerations to consider when a decision is made to buy a home, especially in view of the present trend towards higher rental costs for accommodation.

Perhaps the most important consideration after all is the personal comfort of the property owner. But no-one should ever lose sight of the need to preserve the most valuable asset most people will ever own — their homes.