March 1, 2021

Top three reasons why the wealthy are selling their property during COVID-19

I am very grateful to work with some of the brightest minds in the country who have accumulated wealth and success over the years. 

I’m sure you are curious as to why some would be selling their property during this time so let me share my observations as success leaves clues: 

To reallocate capital

Time is money and the wealthy understand the opportunity cost of time. With interest rates at a historic low and the equity market sizzling, particularly if you’ve been part of the thrilling Afterpay and Tesla ride. The million-dollar question is how much are you losing by having your capital tied up in nonperforming assets? 

Uncertainty of future growth 

When some of my clients bought these Off the Plan Apartments, there was no competition and zoning codes had not evolved. Fast forward 5 years later, towers seem to be mushrooming everywhere. To put it simply, supply now outstrips demand, with over 300+ new apartments available. As travel and migration restrictions affect population growth, downward pressure on prices occurs. Navigating uncertainty is about mitigating risk.  

Lifestyle change

I’m not sure if you feel the same way, but I’m extremely over COVID-19 and like everyone else, we just want to claim our lives back. The astute choose to value their quality of life over letting this pandemic hold them to ransom. Moreover, they understand that the costs of putting their life on hold far outweigh their finances because for them, while money can buy many things, they cannot buy more time. 

If you own stock in the riverside precinct, get in touch with me today for a confidential discussion.