Sydney, July 8: It’s no secret that many buyers are consistently getting priced out of today’s property market, with property values around Australia having increased by 7.2 per cent this year.
It’s deflating and can cause many to begrudgingly give up on their dream of being a homeowner.
“Searching for that dream property can be tiring at the best of times, but in the current market, it has become all-consuming and somewhat depressing for those who are constantly missing out,” Aus Property Professionals director Lloyd Edge and author of Positively Geared said.
“To help those feeling defeated, I have shared the top five tricks to getting ahead in today’s hot market.”
Learn about the market
It might sound obvious but I’ve seen many buyers miss out on places as they’ve underestimated the true nature of the current market. It’s also important to note that it’s not entirely their fault as some agents are ‘underquoting’. Therefore, buyers are thinking a property might go slightly above the price guide, when in fact, it is going for hundreds and thousands of dollars over the guide. To combat this, I urge people to understand the direction of the market and become familiar with the factors that are impacting it e.g. low interest rates, grants, schemes, higher buyer demand, low stock levels etc. Keep your finger on the pulse in case any of these contributing factors change and consistently monitor houses that have sold in the area you’re interested in, as the market can change weekly.
Get in with the inner circle of real estate agents
If you’re interested in a particular area, contact all of the local real estate agents and ensure that you are on their database. They will often send out available properties to their subscribers before they list them online. A pre-market opportunity will allow you to start having discussions with the agents before the crowds roll in. These agents can also keep your criteria in mind and give you a call when a suitable property arises.
Get your finance pre-approved
If you are serious, consult a mortgage broker as soon as possible to gain pre-approval. In the current market, I’ve seen brokers advise clients that pre-approval is taking too long and that they should just wait until they purchase a home. This will not only slow you down but might compromise your success, allowing someone else to swoop in. Pre-approval will also give you the confidence that the purchase will go smoothly and you know your exact limit, meaning you won’t end up in a mountain of debt.
Employ services of a professional
I urge people to consider professional services at this time, for example, a buyer’s agent can guide you through the whole process or just help you win an auction. They know the market inside and out, know how to negotiate, they can find off-market opportunities and can potentially save you thousands.
This is when you rent where you want to live and buy an investment property where you can afford to. This strategy allows for buyers to enter the property market sooner, whilst also living their desired lifestyle. However, to make this work, you must invest the difference to build your wealth. Many people just spend this difference, and their investment journey is halted.