Let’s face it, the spring property market this year in Sydney is shaping up to be a bit of a Malcolm Turnbull (in other words, a fizzer). It’s been well publicized that the level of new listings is lower than in previous years. I have seen buyers knee-jerking in their response to this by paying panic prices and often buying inferior property during the current property market conditions.
Obviously, as a buyers’ agent, I want to help people to buy property, however, there is something that is far more important than buying any old piece of real estate just to get on the ladder. And that is (repeat after me):
BUYING THE RIGHT PROPERTY!
There are worse things than renting or being out of the property market. Here are two examples:
- Buying the wrong home and either being miserable or having to sell & buy again and waste tens (or even hundreds) of thousands of dollars in stamp duty, agents fees, opportunity cost, etc.
- Buying an underperforming investment property and having all your capital/borrowings tied up with a poor asset which loses traction against the wider market the longer you own it.
I know it’s hard not to panic when it seems like there is nothing to buy and prices are crazy. But I want to encourage you to stay focused and remember that buying the RIGHT property is the only goal worth having. If you have lost your way or are having trouble clarifying exactly what and where the right property is, we can help with our tailor made Getting Started Session.
Couple of weeks ago we went to auction for a client who has been looking for only a short time. When they first saw the property their initial reaction was that it might be unaffordable. Doing our price research and due diligence we saw that it should be within budget (but only just). Many buyers might give up at that point, assuming that competition will push the property beyond their reach (and, often that happens!). However, we kept focused and proceeded to auction. The amazing thing is that the auction day/time/location worked in our favour. These three factors actually made it difficult for buyers to get there. As a result, we nabbed the property for less than we thought we would have to pay!
And I have another recent example of why not panic-buying is a good idea. I had been evaluating a property for a client who was eager to put in an offer because the agent was saying that they had been receiving serious offers and it was sure to sell within days. The only problem was that the vendor’s solicitor was taking days to respond to requests to contract amendments. Sometimes buyers panic and sign an unfavourable contract during these current property market conditions, however, this is something to be very careful of. During that delay another VERY comparable property came onto the market on the same street.
Waiting for the right property is smart during the current property market conditions – and being ready to act quickly once you find the right property is also smart. It’s just that being patient while you wait is very difficult. Just remember: buying the wrong property and/or paying too much are worse than not being on the property ladder.
Published:- 2 November 2016
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.