Predictions property purchases would be out of reach of most Australians by 2023 weren’t far off the mark having risen by a staggering 30% since the first quarter of the 2020-21 financial year. And as prices peaked in April this year and rental prices skyrocketed, economists who feared the worst are now predicting the prices are going to drop by as much as 15-20%.
Prestigious postcodes near the beach or in sought-after school catchment areas are predicted to retain their value. The property market is difficult to negotiate with homeowners who still seek top dollar, wanting the high prices from the Queensland prices from the pandemic boom. Everyone wanted to escape their states and head for the sunny Gold Coast, driving prices even higher. Today’s savvy buyers are more educated and standing their ground wanting to pay less, with more flexible settlement arrangements. The end results end in a stalemate.
What can you do to avoid a standoff and get a property bargain in 2022?
Beware the marketing ploys to suck you in.
Prices may not be as they appear. Sydney-based buyers agent Kate Hill told the Australian Financial Review, that house prices are being overinflated. She told AFR some vendors are asking for higher prices knowing they will be negotiated down. Others advertise lower prices to get more offers and generate higher bids. Familiarise yourself with the tricks of the trade. If you’re not confident in your house negotiating skills, engage the services of a buyer’s agent. National Wealth Advisory can connect you with experienced property advisors to help educate you on how you get the best bang for your investment buck without falling subject to real estate gimmicks.
Get pre-approval
Housing stock is low and demand for a property bargain is still strong, so it’s important that you get pre-approval and line up your ducks before house hunting. Even if you already have pre-approval, talk to your financial institute to see if you still qualify due to cash rate and interest hikes. If you need a mortgage broker to rally on your behalf, we can find you a local mortgage broker who has the National Wealth Advisory tick of approval.
Make your finances ready to go, as this can often be the one sticking point when it comes to missing out on your dream investment property. Vendors are more likely to go buyers who don’t have contract clauses such as subject to finance or based on your home selling first.
Listen to the seller’s needs
It may not be the highest price that gets you across the line when it comes to purchasing a property. Understanding what sellers want such as a lengthy settlement period or other special arrangements may give you the upper hand to secure purchasing the property without pushing the price up.
Do your research
It’s important to educate yourself on property prices in the area you wish to buy and the surrounding suburbs. Look at the difference between freestanding properties, townhouses and apartments. While you might be looking in an affluent suburb, the surrounding street value may differ. One of the biggest stressors as a buyer is knowing a property’s worth, simply because the market is so changeable.
Look for properties that need TLC
If you’re handy on the tools, find property that needs some tender-loving care or see potential where others may fear to tread, you may be able to negotiate a better deal. There can be long waits for building materials and tradies, so use that information to your advantage. Perhaps you’re a couple who prefer to move into somewhere that doesn’t require any work, connect with our team so you can get recommendations for advisors who will help you secure the perfect investment property.
Do your due diligence before purchasing
No one likes nasty surprises which is why it’s important to do your research and check out the house prior to purchase. Don’t be scared to order a pest and building inspection. During COVID-19 many people were purchasing properties unseen. Desperate times call for desperate measures, but experts in the real estate field would recommend you ensure any alterations or cancel approved, get a termite and full building report. You’ll want to know if there’s the potential for black mould or if the roof needs replacing, because fixing these things is not cheap. Finding defects doesn’t have to be a reason to forget the property, you may be able to negotiate on the asking price.
Shop around
Engage the services of a mortgage broker to liaise with a financial institute where you can get the best rate or incentives such as cashbacks. If buying a house is part of your investment portfolio, you’ll want to make sure you get a price so the mortgage repayments are not going to over stretch your income.
Investment properties are a wonderful way to grow your wealth when it’s done right. Before you invest or buy a property, talk to the team at National Wealth Advisory. They have a large database of trusted advisors they can recommend based on your individual circumstances.