Barfoot & Thompson managing director Peter Thompson recently joined Ryman Healthcare for a
about current property market trends. Peter had some sound advice for
selling your home in order to buy into a retirement village. Below are some highlights from
1. Should I spend money on my property before I sell?
It depends on the market you’re trying to target, says Peter.
He believes most buyers prefer to do renovations themselves, especially if they’re developers
or young people. However, if your target market is busy parents or professionals, it could
be worth making some small renovations. Peter strongly recommends speaking to your real
estate agent before making any structural changes.
At a bare minimum, he recommends tidying your property and making it presentable.
“Clean, tidy, get the grounds looking spick and span, do the gardens,” suggests Peter.
“Always make sure the property is well-aired and any sort of must is cleaned up and dealt with on a regular basis.”
2. What’s the best way of selling my property?
If your property is in Auckland or a similarly hot market, Peter recommends a 2-3 week
selling period with an auction.
“It makes people make a decision a lot quicker,” says Peter. It also condenses the amount
of time your property will be on the market.
A shorter sales period means you’re far less likely to be worrying about daily open homes
and the stress that comes with keeping your house buyer-ready.
If you live out of Auckland, it’s a good idea to speak with a real estate agent to
understand what approach will work best for your location.
3. When is the best time to sell?
If you’re selling your home, “there is no right or wrong time to sell because you’re buying
and you’re selling in the same market,” says Peter.
“If you’re moving into a village, you’re going to be buying at the same rate as what the
village is selling them at that time.”
In terms of the best season to sell, he acknowledges that summer is ideal “when the sun’s
out and everything looks clean and bright”. However, “other people like to buy in winter to
see where the leaks are or if the ground’s wet”.
With so many variables at play, Peter has some astute advice.
“The important thing is to believe in what you want to do and make that move.”
If you’re uncertain, talk to real estate agents and obtain an estimate for what your house
might sell for on the current market.
4. Do I really need to sell my home?
Selling property isn’t the only way to buy into a retirement village. Peter suggests
exploring all avenues before selling your home.
“Each person is going to have different financial situations, but if you don’t need to sell
your property to move into the village – if you’ve already got funds that you can afford to
pay for that – I would highly recommend that you look to continue to own your property,”
He explains that continued homeownership allows you to benefit from ongoing capital gains
and can also serve as a “safeguard” for future medical and health expenses.
5. What should I do with my other investments?
Peter’s advice here is simple and straightforward: “Don’t sell your investments unless you have to.”
However, he adds an important caveat, which is to “spread [your investments] across your
various means”. In other words, don’t put all your eggs in one basket. Many people have
great success on the share market, for example. It’s best to speak with a financial advisor
before making any investment decisions.
Hear more from Peter
Peter spent just over an hour chatting with Ryman Healthcare and shared many more nuggets
of wisdom. You can watch the full interview
here. If you'd like a free property report including an estimated value of your home click here.