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Australia’s insatiable appetite for owning a home shows no sign of abating. But while demand for property is rising, supply continues to dwindle. With the recent announcement of the scrapping of STAMP DUTY for properties valued under $600,000 and a sliding scale for properties up to $750,000. This is only going to make this segment of the market more competitive and unless a miracle happens and the supply of properties increases overnight, then prices will almost certainly increase.
The law of supply and demand is relatively simple – more supply equals less demand, and less supply equals more demand. But how does this help those of us looking to buy?
We have some practical tips on how you can reach your property goals, despite the runaway train and the continued lack of supply many buyers are facing.
- Purchase a property that is (OFF MARKET)
Off market opportunities are properties that are not listed for sale on realestate.com or domain.com. There are many reasons why a seller may consider an off-market sale.
- Convenience and Privacy, many vendors (owners)would prefer not to have 50-100 people walk through their home during a sales campaign.
- Financial Stress – We recently purchased a property where the owner owed a large amount of money to the bank and needed to sell.
- Price – They have a price in mind for their property. It’s a matter of completing your due diligence and making a strong unconditional offer and the vendor will likely say yes.
- Tenants – The property is occupied by tenants who can often make it difficult for the selling agent to access and present the property in the best condition possible.
- Quick sale – The vendors (owners) are looking for a quick sale. They may have just secured a job interstate or overseas. Or they may need to sell quickly for personal reasons.
We currently have access to numerous OFF MARKET properties in the following suburbs. South Melbourne, Albert Park, Seaford, Frankston South, Patterson Lakes, Glen Waverley, Mornington, South Yarra, Hawksburn and Carlton North. and If you are interested in engaging our services to open the doors to any homes not listed for sale, please call me 0402 346 810 or email me – firstname.lastname@example.org
- Buy in neighbouring suburbs to where you keep missing out.
While this might seem like a no-brainer, many buyers get caught up in the frenzy of a particular suburb’s perceived value and shell out for a property they could buy cheaper in another suburb. And if you’re paying a premium to secure a property in a sought-after location, is it really the best investment decision?
A great example of this is Northcote – one of the best-performing suburbs in recent years. It’s close to the Melbourne CBD, well-serviced with public transport, parks, cafes, and shops and is spoilt with hundreds of well-built period homes. But with the recent surge in prices, Northcote is completely out of reach for many buyers.
A more affordable option would be to look further out, in the suburbs of Thornbury and Preston. You’re just a stone’s throw from everything Northcote has to offer, without the price tag. It could also be a smarter investment, with these suburbs both experiencing higher than average price rises over the last 18 months.
Another example is Seaford and Frankston. Both with similar amenities and services – and proximity to the beach and infrastructure. However, Frankston offers approximately a much larger volume of properties available to buy at any given time due to the larger area the suburb covers.
- Consider a smaller property or a different type of property.
Thinking outside the box when it comes to buying property is not only a good strategy to get more bang for your buck, it’s also necessary if you’re finding yourself priced out of areas you want to buy.
While the Australian dream of a quarter-acre block is becoming a thing of the past, our collective mentality still champions this as the benchmark for property ownership. So, it’s time to consider other options.
Buying a smaller property could get you into the market in the area you want. So instead of hunting for that house with a large backyard, consider a house that’s semi-detached or on a subdivision.
Or instead of a house, why not an apartment? Just be careful with apartments as there is an oversupply of new apartments in some areas of Melbourne, such as Docklands – Southbank and St Kilda Road. A smarter strategy would be to hunt around for an apartment in an older building. An Art deco apartment are generally larger in size and offer more character and charm. They will also be likely to increase in value than apartments in new development.
- Buy a property that needs renovating, a deceased estate or at a mortgagee’s auction
Let’s face it, when you buy a new or renovated property, you’re paying a premium for the luxury of being able to move in immediately. Make sure you know exactly what costs you’re up for – get a thorough building report, seek independent advice and work out how much you’d need to put into it to get the property to the standard you want. You don’t want to be surprised with costs resulting from an expensive hidden problem such as structural issues.
Another option is purchasing from a deceased estate or a mortgagee’s auction. Often the deceased’s family or a lender will just want to sell a property and be done with it. You may even be able to buy off-market and score a bargain!
Feel free to call me on 0402 346 810 if you need expert advice on making the best property purchase for your circumstances.
Happy house hunting.