Buying or selling a property is not to arrive and take away. Like any financial decision, it requires analysis and patience. Good planning will allow you to buy a house at a good price, or sell a property at a value that generates profits.
However, your strategy will not work if you choose a bad time to buy or sell a home. The purchase or sale of your apartment or house must be at the exact time and place. Therefore, consider the following factors of time and seasonality before taking the first step:
When interest rates are low
When the interest rates of mortgage loans granted by banks are low, it is time to act. It is also a good time to renegotiate mortgage loans already granted, although it will depend on how long the loan takes and the disposition of the financial institution.
Remember that renegotiating a loan involves operating expenses and other associated costs. However, although interest rates may still be low, banks still request 20% of the value of the property to grant a mortgage loan; in some cases, up to 25%.
Even some financial institutions can request less than 20% standing (up to 10%, not less) in exceptional cases and must be evaluated.
When the economic rebound comes to stay
If the economy of a country begins to show signs of recovery after a period of crisis or low growth, the supply and demand of properties take time to react.
That period of time of rebound, on average one year is the worst time to buy or sell since people are still not entirely convinced that the situation will improve. It is preferable to wait for the country’s growth figures to mark a milestone, such as returning to percentages observed before the crisis.
In the case of Chile, the consensus in the market is that once the economy exceeds the barrier of 2% annual growth, then we can speak of sustained recovery. To take advantage of this scenario, you should monitor the current prices in the market and see if there are new housing projects in your area folder.
- If you want to sell, compare the current prices with the minimum sale value that allows you to profit. This monitoring will allow you to detect and anticipate an oversupply of properties, which could lead to lower prices; Ideally, do not wait until the market saturates to put your home for sale. Then, define a margin of values that suits you best and willing to negotiate within those limits.
- If you want to buy, in addition to monitoring the available offer, set a deadline that does not exceed one year. This will allow you to observe carefully the variation in the values and the type of offer that exists, considering:
- Value in UF. Currently, the most valued homes are between 2 thousand and 3 thousand UF.
- Footage Homes up to 60 m2, with two bedrooms and 1 bathroom.
- Communes or central districts, with good locomotion and access to public transport, in cities of high demand.
- Sells owner or investor If it is an investment department, the motivations and times of the seller will be different from those of the owner who sells due to financial need or because he wants to expand.
When the good spring vibes, Christmas and New Year prevail
According to some financial consultants, the best time of year to acquire a home is always the week between Christmas and New Year. It is a period in the year when few buyers go out to look for property, and sellers face a drought of interest.
Therefore, the supply increases and competition decrease. Given the need to sell, the owner or person in charge of selling the property will be more open to negotiate the price. In general, the spring-summer period, as well as long holidays, are also good times to go shopping or sell.
In the first case, it is more convenient to change house when there is good weather, and families with children have more time to devote to finding housing as the school year ended.
In the case of holidays, like Christmas and New Year, the buying and selling of houses lower the guard; the mood is calmer, so it is the best time to offer a reasonable price that benefits both buyer and seller.
When the university family grows
If you live near a university, you can take advantage of the housing hunting season in which hundreds of families participate. Between December and February, parents leave in search of housing for children who enter the university either in their own city or in another region of the country.
When it comes to the first child who goes to college, normally your family chooses to rent during the first year. The lease gives you the flexibility to evaluate how convenient the location and accessibility of the home is, to know the neighborhood better, and to change if you do not like the place.
However, when it comes to two or more children going to the same university, or to different study houses in the same city, many families prefer to invest in a property.
Once your children graduate, they sell it or lease it to a new university family in a similar situation.
The best time to buy a home depends on both external and internal factors.
For the former, the economic health of the country influences, as well as the supply of new and used properties existing in the market at the time of leaving purchases or placing a home for sale.
In the case of internal factors, the sale of your home can be compromised if you do it because of an economic emergency. Also, if you buy rushed or without sufficient capital, you risk losing a good opportunity.