While conditions among Australia’s real estate markets have varied in recent times, it seems the majority of homeowners are confident they have benefited from capital growth over the past 12 months.
According to the results of a survey of 2,000 homeowners by law Firm Slater and Gordon, 78% of respondents believe their home has increased in value in over the past year.
Not surprisingly, Sydney was home to the greatest proportion of respondents who believe their home is worth more now than it was a year ago, with 94% saying yes.
The survey shows that 89% of homeowners believe the value of their home has increased, while &85 of homeowners in Adelaide and 76% in Brisbane have a positive view of their situation.
In Perth, 57% of homeowners believe they have seen an increase in value.
Across the country, 31% of homeowners said they would consider selling in order to cash in on the growth they have seen in the past year.
More homeowners in Sydney (38%) said they would consider selling compared other location.
Thirty-six percent of Melbourne homeowners said they would consider selling, while 35% of homeowners in Brisbane, 26% in Perth and 24% in Adelaide said they would consider putting their home on the market.
But homeowners looking to cash in have been warned to make sure they are prepared for the sale process.
“If you want to cash in the increased value of your property, you’ll need to be familiar with both the legal aspects of selling your house, as well as the processes around buying a new home to live in,” Slater and Gordon conveyancing works lawyer Robert Kern said.
“If there are any issues with the transfer or you make a mistake on the application, it can result in the settlement being delayed or the sale not going through,” Kern said.
Kern said even a small mistake could be costly for those looking to sell.
“As the value of a home increases, the financial impact of complications also increases,” he said.
“For example, issues with an undisclosed easement could see the value of your home drop by 10 per cent, that’s a $100,000 loss if the home worth has increased to $1 million.”