How great is January for that feeling of excitement, expectation, and hope, to say nothing of making New Year's resolutions for the next 365 days? 

If you're hoping to spark some fireworks with your real estate resolutions, read on!

I want to buy in 2023

Congratulations! 

Firstly, don't be scared off by talk of crashing, or even cooling, property markets, and soaring interest rates and inflation.

As we've said many, many times lately, the market certainly changed in 2022 and it's definitely a choppy world out there now.

But 2020-2021 was also extremely choppy, with extraordinary price growth and buyer demand combined with 18 months of incredibly low interest rates.

If you're planning to buy in 2023, you need to be prepared for the long haul of property ownership - we're talking a few decades at least.

So be prepared for some big up and downs in your budget during this time, as well as that of changing domestic and international global outlooks.

Top tips for buyers in 2023:

1. Keep calm and carry on regardless of the panic-stricken headlines
2. Remember: it could definitely be worse out there (think the 17.5% interest rates of 1990)
3. Get your ducks in a row before you make an offer: 
   1. Lending pre-approval (the most important duck)
   2. Conveyancing
   3. Building and pest inspecting
4. Expect inevitable house-hunting blues, including high stress and pressure
   On this point.....
5. Prepare for a long journey
6. Set up a support network
7. Assume interest rates will rise for at least the first half of 2023

I want to sell in 2023

That's fantastic!

It's certainly a great time to be a seller, especially in cities such as Adelaide, Perth, Darwin, and Brisbane.

As we noted at the end of last year, Adelaide experienced annual price lifts of 13.4%, which ain't too shabby for an under-the-radar city.

Our regions too are doing very well when it comes to both price growth and buyer demand and even in dropping Sydney, sellers are still enjoying a median growth of 10.3% above pre-COVID levels in March 2020. 

As well, if you're selling a more affordable house - and especially an apartment - we can virtually guarantee you'll win some major goals with this side of the market experiencing very high buyer demand.

Top tips for sellers in 2023:

1. As with buyers, keep calm and carry on regardless of the panic-stricken headlines - and yes, Sydney and Melbourne, we're looking at you for this point!
2. Also as with buyers, assume interest rates will rise for at least the first half of 2023
3. Think about the possibility of renting out your home or rentvesting (see below)
4. If you're simultaneously selling and buying, start thinking now about the future of your current mortgage.
5. Do you want to refinance with another lender and discharge your mortgage, or would you prefer loan portability?
6. Remember that even though you may sell your home with positive equity, your new home will almost certainly demand a high price too.
7. Simultaneous buyers and sellers: utilise - and appreciate! - what you learned from your last purchase especially when it comes to lenders, brokers, pre-approvals, and marketing.

I want to invest in 2023

Property investments never lose in the long term so good for you with this great new year's resolution!

And now is a fantastic time to enter the Landlord World with vacancy rates down to zero, or at best, holding at around 1% or lower in most regions, says CoreLogic.

The group's final Home Value Index for 2022 described Australian rental markets as "extremely tight", with vacancy rates being driven lower by a combination of low rental supply and rising rental demand, thanks to a strong rebound in net overseas migration.

"The number of capital city homes advertised for rent reached a decade low through November and regional rental ads have not been this low
since 2009," research director, Tim Lawless, said.

As well, Brisbane, Adelaide, and Perth are again winning grinners when it comes to lifting annual rental prices. 

In the five years to November, Brisbane's rental prices increased 13.4% while those in Adelaide and Perth jumped 12.8% and 10.5% respectively.

Alternatively but similarly, perhaps you're keen to hang onto your current property and rent it out, even temporarily.

Either way, the Landlord World can be an exciting one, particularly in the current market.

We're looking forward to writing more on property investment this year but in the meantime ...

Top tips for investors in 2023:

1. You may want to consider moving faster rather than later, as CoreLogic believes that rental growth may be easing across some cities, particularly when it comes to the house market
2. Know your budget and understand your cash flow down to the final penny
3. Also, know your investment goals and exactly what you want to achieve in travelling the investor path
4. On this point: consider whether this property will be positively or negatively geared
5. Consider the tax implications of your investment
6. Similarly, focus on the practical issues of your investment - rather than your emotions - when purchasing 
7. Don't underestimate ongoing costs such as maintenance, insurance, and body corp, property management and marketing fees
8. Don't underestimate the ups and downs of different tenants living in your home, especially in the current market 

I want to rentvest in 2023

Yet another brilliant real estate resolution for the new year - congratulations!

That being said, operating as a landlord and rental tenant simultaneously in this current market - while also living in different locations - may not be as easy as you think.

As we said above, the property market right now is itching to see more investors - but then, so are a load of keen tenants!

Top tips for rentvestors in 2023:

1. Ask yourself whether rentvesting will be worthwhile 
2. Rentvesting is financially beneficial if ...
   a) the difference between mortgage repayments and rental repayments in your preferred house and location is high and
   b) works best for those wanting to buy, or live in, city suburbs with extraordinarily high sales prices
3. Almost more than investors, you need to play your rentvestor cards smartly and wisely
4. Be prepared to operate in two very different markets.
   Your investor half will be extremely popular but your tenant side will be fighting to get to a front door 
5. As with investors, you'll need to buy your investment with your head rather than your heart
6. Also as with investors, you'll need to know your budget - including tax implications and positive and negative gearing - back to front and inside out

We’re here to help

We're always happy to help with all the dramas and stressors of house buying, selling and investing.

And if you're particularly tired of house-hunting, we've even partnered with buyer advocates who can check out homes for you and organise sales assessments and negotiations.

Our off-market and pre-market marketplace gives you VIP access to properties so you can get in first.

Just sign up at Listing Loop or download our app.

And happy new year!