Interest rates are now at their lowest point for several decades. Property listings are up – despite the traditionally quiet winter months – and auction clearance rates and private treaty sales are higher across all capital cities than they’ve been for some time. All indicators that the spring auction market is going to be fast, furious and very competitive!
Be ready to move fast on a good opportunity
After a long period of sluggish growth and backsliding, consistent increases in median house prices over the past twelve months have convinced a lot more vendors to put their property on the market for sale. And whilst we may be looking at vastly increased housing stock levels this spring, we’re also looking at a very competitive loan market that makes it possible for a lot more people to buy property.
Being in a position to move quickly when you identify a property you wish to purchase is more important than ever before. To make sure you’re ready to go when the right property comes into view, there’s a few things you can prepare ahead of time.
Whether you’re a first home buyer, up-sizing or down-sizing, or in the market for an investment property, getting your financing pre-approved is key.
We’re here to help you analyse your financial position, so you’ll know exactly what you can afford to spend. This will help you to narrow down your search to properties you can actually afford, saving time and a great deal of frustration.
When you arrive at the auction, knowing how high you can bid ahead of time will help you formulate a bidding strategy that will give you a better chance of success. And as auctions have no cooling off period or a ‘subject to finance’ clause in the contract, getting your finance pre-approved could help you avoid making costly mistakes.
We’ll also help you identify exactly the right loan for your needs and personal circumstances – as no one wants to end up compromising their lifestyle and cash flow to meet mortgage repayments. There are lots of different loan options available and selecting the right one could not only facilitate your next property purchase, but ensure you are comfortable with your repayments and in a great position to buy more property in the years to come.
Purchasing a property is not a simple process. There are a number of important steps you need to take and professional people you’ll need to consult with. Lining up your professional advisors before you begin your property search will save you time when you identify your opportunity and enable you to move quickly so you don’t miss out. To make sure your buying process is smooth and hassle free, ask us for a referral for:
- Building and pest inspection companies local to your search area, so you can get the formalities out of the way fast when you identify a property to buy
- Professional valuers – so you’ll be able to set a limit for the property when bidding
- Buyer’s agent – particularly useful if you’re not confident about bidding at auction
- Solicitors and conveyancing professionals.
Create a buying strategy
Spring is promising to dish up a string of ‘Super Saturdays’ when as many as 1,000 auctions could be held in any capital city in any given weekend. Unless you’ve prepared yourself well by creating a buying strategy and doing your research to narrow down your search, you could find yourself in the daunting situation of looking through hundreds and hundreds of property listings every week for one you like. If you’re not careful, you could spend all your time searching the listings and none of it inspecting properties!
Talking to us will help you set a budget. From there you need to decide which suburbs to look in. If you’re looking to purchase a home, you’ll need to consider your lifestyle and select the suburbs that meet your needs with regard to your work, children’s schools or perhaps near to family and friends.
If you’re an investor, you’ll want to focus on the capital growth potential of the suburbs you choose. Bear in mind that your local market may not offer the best opportunities – Sydney and Melbourne have already enjoyed speedy capital growth over the last 24 months, so you might want to consider other areas that are yet to take off.
Line up your Buyer’s Agent
Getting advice from an experienced Buyer’s Agent may be very beneficial to you, whether you’re buying a home or an investment property. They can help you formulate your buying strategy, search the listings for suitable opportunities to view, organize property inspections, negotiate a price and close the deal.
If you simply don’t have the time or experience to effectively perform these tasks yourself, a Buyer’s Agent could save you a lot of time and money and help to ensure you don’t miss your perfect opportunity whilst buying conditions are good. If you’re an investor, there’s a good chance the cost of a Buyer’s Agent will be tax deductible – and two heads are better than one, you can cover more ground more effectively with some expert assistance.
If you’re excited to get started on your spring property search, don’t hesitate to give us a call. When we meet, we’ll help you to get organised and do what’s necessary to ensure you’re in the very best position to buy when you find the perfect place.