Uncertain about whether to buy now? Here’s our Top Tips for buying well in a Buyer’s Market
Despite it being a buyer’s market, many buyers and investors have become nervous and are holding back on their purchasing decisions…waiting to see what the market unfolds, perhaps hoping for a further drop in prices.
So should you buy now or wait for prices to drop further? While the markets have weakened, if you’re an investor, the right time to buy is when you have the finance to do so and when the purchase fits in with your long-term plans. So, if you’ve decided to invest in an environment of falling prices, here’s our advice to helping you make a wise purchasing decision:
- Don’t try to time the market: don’t necessarily try to time the market – even the experts have difficulty predicting the market. Consider the fundamentals of strong population growth, infrastructure investment, a robust economy with excellent jobs creation – these factors underpin a property market. Find properties that are in demand even in a environment of lower prices.
- Location: avoid locations with a high supply of new apartment projects as they are likely to suffer due to significant oversupply. Buy well-located properties, properties which have access to good public transport. People will pay a premium to live near public transport.
- Find properties with inbuilt wealth: for investors find properties that offer gains which will offset falling prices, this includes positive cashflow properties and properties that you can add value to offset any losses you may incur. For instance a duplex may value higher on completion and offer a dual income.
- Get a professional team around you: this includes getting an independent mortgage broker and a buyer’s agent who will both help you find the best deals, look and on-market and off-market opportunities and negotiate on your behalf.
- Be prepared: if you are looking to snap up a bargain when prices are lower get your finance in place, be ready to act quickly on a bargain and this means knowing what you can afford and what lenders are prepared to lend to you as you may not be able to borrow as much as you had hoped for.
- Research your purchase thoroughly: understand recent sales, demand for rental in the area that you wish to purchase, be informed and conduct your due diligence so you are confident that you are purchasing well and making a wise decision.
- Don’t be afraid to purchase at auction: buyers are cautious and with lower demand there are lower attendees at auction, less competition many result in getting a better price at auction than by putting an offer in before auction. If you aren’t comfortable bidding at auctions get professional assistance of a buyer’s agent to represent you at auction – a buyer’s agent will stick to the brief and won’t let emotions get involved.
Thinking of buying and looking for guidance and ready to take your property portfolio to the next level? Contact us to arrange a free 30 minute strategy session, get clear on your goals and discuss how we can help you to take advantage of the buyers market and find your ideal new home or investment.