Knowing when to capitalise on resale gains

Timing is everything when selling your property for capital gains. Equally important is having the adequate means to upgrade in the right area.

As many informed industry sources explain: before buying in the first place, you should try to judge how easily and for how much you’ll be able to resell your property if adverse circumstances should arise.

After all, you want to make a profit so you can move to a bigger and better home in a suburb that ticks all boxes for amenities and lifestyle.

By concentrating on the time-honoured mantra of “location, location, location”, it’s hard to go wrong.

Analysts attest to at least six factors that influence the potential future growth of a neighbourhood.

These include the area’s overall appearance, quality of schools, access, shopping, crime levels and the absence of any large negatives, such as living next door to a rubbish tip or freeway.

Even if you’ve been lucky enough to buy a home, the same principles apply if you wish to get ahead in the property game.

Biding your time wisely before buying

If purchasing property is your main objective, it pays to save — no matter how small the amount.

Adding that little extra each week to mortgage repayments can make an enormous difference to the interest paid in the long term.

Pay fortnightly, rather than monthly, as you make more repayments each year.

And if interest rates go down, keep up the higher repayments because you won’t miss the money you didn’t have before.

Likewise with wage rises, tax refunds and any financial windfalls that come your way. Put it aside.

There is no magic wand to wave for becoming a proficient personal-finance planner. But when discipline and preparation combine, adherence to these practices will help you to get ahead in life.

By paying attention to the vast array of factors mentioned here, you will know not only how to make informed decisions about property purchases, but also what is the right price to pay.

It all makes dollars and ‘sense’ in the long run.

Sites to see

Financial Planning Association (https://www.fpa.com.au), https://www.govt.nz/browse/family-and-whanau/financial-help-for-your-family/getting-help-budget/ or try the cashflow spreadsheet at https://www.lifebydesign.com.au/2017/01/25/financial-freedom-through-personal-cash-flow/