Preparing your home for an autumn sale on the Upper North Shore

The latest figures show that despite growing by an incredible 25.3% last year – the largest lift in more than three decades – Sydney property prices are continuing to rise.

Recent data from CoreLogic shows Sydney dwelling values lifted by another 0.6% in January. With prices still on the up, this autumn could be the perfect time to sell. Here’s how to prepare your property for an autumn 2022 sale.

Why sell in autumn?

Together with spring, autumn is considered one of the best times of year to sell a home. The weather is neither too hot nor too cold, and buyers are refreshed, engaged and out and about after a summer break. It can be a good time to showcase a south-facing house that isn’t at its best in the cold and dark of winter or a house with west-facing windows that is uncomfortable in the heat of summer. The Upper North Shore is famous for its gardens, and they can be particularly appealing in autumn when the colours are changing, and the mild weather is inviting outdoor living. And the autumn market is usually less frenzied than that of spring, which can give your property a better chance to stand out and be seen.

Data from realestate.com.auanalysing property sales from January 2015 to February 2021 shows that selling your home in March will, on average, generate a 4.85% higher sale price than if it were to be sold in January. April sales prices, meanwhile, are on average 3.96% higher than January prices, while selling in May will typically generate a sale price 5.65% higher than a January sale.

Is 2022 a good year to sell?

Sydney property prices rose by 25.3% over 2021, and in some Upper North Shore suburbs, they’ve increased even more. In South Turramurra, house prices rose by a jaw-dropping 52.5% last year, according to CoreLogic, while in Gordon, they lifted by an amazing 46.5%. Despite these huge gains, Sydney real estate values are continuing to grow. From 1 November to 31 January, they lifted by 1.8%, and in January alone, they increased by 0.6%. Experts like Shane Oliver from AMP Capital are forecasting a 5 per cent rise in national house prices this year, but he also predicts that Sydney prices will likely peak by the middle of the year, making autumn an ideal time to sell.

One of the factors that drove prices so high so quickly last year was a lack of available homes for sale. Demand from buyers simply outstripped supply. Large homes in family-friendly suburbs and lifestyle properties with cooee of nature, two things the Upper North Shore does very well, were particularly sought-after. Here we are in 2022, and stock levels are still low, with CoreLogic reporting that new Sydney property listings were down 0.9% on the five-year average in January, while total inventory levels were 11.8% down on the five-year average. With fewer than average homes for sale and plenty of buyers who missed out in the mayhem of 2021 still hunting for a new home, it’sa good time to be selling.

What are the tax implications of selling before the end of the financial year?

While the sale of the home you live in isn’t subject to capital gains tax (CGT), the sale of an investment property or second home is.

If you make a profit (or a net capital gain) selling an investment property, you’llgenerally be liable for CGT. If you’ve owned the property for more than a year, you’ll receive a 50% CGT discount.

If you make a net capital loss (that is, you sell the property for less than it cost you to acquire and improve it), you can carry it forward and deduct it from your capital gains in future years.

CGT is paid as part of and calculated at the same rate as your income tax, so the timing of your CGT can make a difference to how much you pay. For example, if you know your income will be higher in the next financial year, it makes sense to sell this year so that your lower marginal tax rate will mean you pay less CGT.

Always seek professional advice about your specific situation.

How to prepare for an autumn sale