Bought at the top? It won't take long for Sydney and Melbourne to rebound: John McGrath
Real estate agent John McGrath has says not to panic if you bought at peak times in Sydney and Melbourne last year.
"It won't take long for Sydney and Melbourne to rebound," McGrath said in his latest Switzer column, adding the worst was already over.
McGrath said if you bought at the peaks of the market, around mid-year 2017 for Sydney and late 2017 for Melbourne, not to despair.
"If you’re in this boat, I understand your disappointment in terms of timing but please don’t despair," McGrath said, suggesting no one can pick the top, even himself, the 35 year real estate veteran.
"Unfortunately, in boom markets, there will always be people who happen to exchange at the peak but try to remember you are one of many – thousands of people did the same thing.
"What’s important now is for you not to panic and to look at the situation objectively," McGrath advised.
He said it won't take long for Sydney and Melbourne to rebound.
"These are two major international cities with many unique factors keeping property prices strong," McGrath suggested, saying you shouldn't feel too compelled to get out.
"You just have to be patient while the magic of capital growth takes effect."
He said you should stop worrying if you're an owner-occupier.
"You have a new home to enjoy for as long as you can afford your payments in what continues to be a low interest rate environment.
"If the capital value of your home has come back a bit, it doesn’t matter because you’re going to be there long term and prices will eventually rise again."
He noted that if you're an investor and have bought for different reasons, you've got to hang in there, suggesting that all that has changed is the amount of time your asset needs to bear fruit.
"We’re in the winter period now but the sun will come out again.
"Whether you invest in shares, managed funds, property or any other asset class, there are always going to be highs and lows.
"Smart investors ride out the lows," McGrath said.
