In recent weeks, the media has become increasingly bearish on the property market. We’re starting to see all the usual headlines and predictions that we have come to expect from the media, most of which will most likely never come to pass.
While the reality is that we do live in uncertain times, it shouldn’t impact the way you go about investing in property. In fact, there are a number of reasons why these types of opportunities can really separate you from the pack and allow you to get into an A-grade property.
Over the past 12 months, it’s been a battle for buyers to even find a property to buy. Invariably, they have been fighting with multiple buyers at auction and paying a lot for what might only be an average property at best.
A lot of this was due to the fact that stock levels were incredibly low and that was making competition fierce.
What we’re seeing now is that as buyers it’s possible to have a lot more choice and less competition. This is very important as we can use this opportunity to select the very best quality properties we can. That often means finding the A-grade pockets of a suburb and the properties that check every single box. Something you should be doing in any market in reality.
If we can secure a high-quality property now, we know that it will outperform the market during the next up-cycle. With less competition for the very best properties that makes our job as investors a lot easier.
When the market is flying as a buyer it can be difficult to negotiate. Your job often becomes understanding where the market is at any given moment and paying a fair price for that property.
When competition eases off, your ability to negotiate can really come to the forefront. In the past where you might have had 3 or 4 buyers fighting over a property a vendor might be faced with the reality of only having one person prepared to make an offer.
This means that you can go a lot harder at the negotiation table and secure a better deal. Being able to pay less means that you’re more protected in the event the market softens. It also gives you the ability to secure a property without having to face the competition of an auction.
If you know what a property is truly worth, know your competition and the vendor’s motivation, you can secure yourself some excellent buys in a changing market.
While we keep hearing the drums beating around interest rate rises, the exact timing and how they will impact property markets is very much unknown.
More often than not the thought of an interest rate rise does more to slow down sentiment than an actual rate rise.
What we do know as the top buyers agent in Sydney, is that trying to pick the various tops and bottoms of a property cycle is virtually impossible.
You’re far better off buying high-quality assets and negotiating hard for them in a less competitive market, than trying to wait for a small pullback that may or may not actually eventuate.