Buyers should consider strategies to help them attain homeownership due to increased competition in tight housing markets.
CoreLogic released the latest figures property prices on a national level increased by 18.4% in AugustWith the median price at $667,000.00, it has increased from last year.
Only Darwin was the only capital city with a median price under $500,000, at $486 248.
According to SQM Research, the total number property listings decreased by 26.3% in the same month.
Kate Hill, Advisable Property Buyer, stated that the disconnect between buyer demand for properties and property availability continues to push prices up. This trend is likely to persist for some time.
“Interest rates are also part of the equation and are set to remain at all-time lows for another two, or maybe three, years,” Ms Hill said.
“The record low vacancy rate and rising weekly rents are also impacting property markets. This is encouraging more investors and adding to the price pressure cooker.
Ms Hill stated that the current market conditions make it difficult for buyers to enter the market, while others feel desperate and end up paying more for properties because they fear missing out.
She stated that emotions are not a good thing in property investment decisions. People run the risk of overpaying.
“It is still possible for purchasers to buy successfully in hot market conditions without burning all their cash to do so.”
Ms. Hill shared seven top tips for buyers in red-hot markets.
1. Look laterally
Ms Hill suggested that buyers should search for the “sweet spot.”
Instead of focusing on highly-populated areas, you might consider looking in an adjacent suburb or searching for properties that have potential for renovation. It might be possible to search for affordable apartments.
2. Take action
Buyers must also be proactive in their property search to ensure a successful venture.
Ms Hill suggested that buyers get in the habit of asking agents about any other books they may have.
Hobart is one example. suburbs are coming off as a good deal for both investors and occupiers.
Hobart suburbs include Claremont and Austins Ferry in Brighton, New Norfolk, Oakdowns and Midway Point. These areas have great rental returns and affordable homes.
3. Learn the contract
It is crucial that you have a good understanding of the contract.
“Be sure to have a thorough understanding of the offer and acceptance and contractual process of the respective state, as well as the expectations of the local market, so that you can move quickly, yet as safely, as possible,” Ms Hill said.
4. Make sure to review the contract before signing
Ms Hill suggested that the buyer should have a better understanding about the contract before they can review it.
“Ask your agent early to have the contract reviewed by your lawyer before you start negotiations. So that you can make an informed decision, she advised.
5 Ignore list prices
Ms. Hill stated that buyers should be able to calculate fair market value.
This will help them in buying in a fast-moving market where list price is the starting point.
6. Don’t play it too cool
When participating in an auction, Ms Hill said it’s best for buyers to let the selling agent know they’re serious about the property.
“Let the selling agent know you mean business, such as being the first bidder at auction or even the first to submit an offer pre-auction.”
7. Reach out to the agent
Finally, buyers must be able and willing to communicate with the agent on a regular basis after the inspection.
“Don’t be afraid to chase up the agent after the first inspection as you could be one of 50-plus groups that visited the property and you may not be as memorable as you think were,” Ms Hill said.