Back in December 2008 we couldn’t pay people to take the plunge and buy property. The GFC had just hit and there was extreme uncertainty in the market. Then the Federal Government responded with various incentives to buy and we saw the market turn bullish again in 2009 and 2010.
It slowed again in the spring of 2011 and stayed that way until the most recent boom took off in the beginning of 2013.
In recent months we have again experienced uncertainty in the property market and many areas and price points have slowed down to a sluggish pace. In my experience, that means time to buy.
Regular readers will know that I often exhort property buyers to do the opposite of what everyone else is doing. And that is precisely what the people who bought 78 Annandale Street Annandale in December 2008 did. They bought a top shelf property in a great street. A leap of faith some might say – but a mere 15 months, a lick of paint and some new carpet later, they enjoyed an increase in value of over $500,000.
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Another example is the buyer who paid $1.73M for 17 Duke Street Balmain East in December 2008. This property had been advertised two months earlier for $2.495M and the month prior for $2.35M before his “cheeky” offer was accepted. In June 2010 it was sold for $2.245M in apparently exactly the same condition in which it was bought only 18 months earlier.
If we look at some historical sales in Farnell Street, Hunters Hill you will also see an upward trend. In 2015, 47 Farnell Street sold for $2,450,000, 39 Farnell Street sold for $2,330,000. Number 22 Farnell Street sold for $2,700,000 in 2016 and 19 Farnell Street sold for $2,850,000 in 2017. Just a few weeks ago another home sold, 16 Farnell Street, for an undisclosed price of ‘high $2.8’s’ according to the agent. The 2018 sale is particularly interesting given the press keeps saying Sydney prices have dropped considerably. The question is, what do all these properties have in common? The answer is, 800+sqm land, potential to renovate/rebuild and a desirable location.
So what does this tell us? It tells us that despite the wide spread doom and gloom of the “Sydney property market” quality properties, in quality locations, are desirable and will perform well in any part of the property cycle, despite the market conditions at the time.
While so many other buyers are saying “we are just waiting to see what the market does” there are opportunities waiting in a buyers’ market. We know how to find and secure them at the right price!
It’s the people who don’t follow the crowd who benefit from a slowing market.
First published: September 2011, revised 2013 & October 2018.
DISCLAIMER: Good Deeds buyers tips are intended to be of a general nature. Please contact us for advice that is specific to your individual circumstances. You may also need to get advice from other professionals such as an accountant, mortgage broker, financial planner or solicitor.