As the market settles, property buyers are in a far better position to navigate buying a property. This time last year, demand was surging, and many potential buyers were squeezed out of the market. Property prices increased by over 20% nationally and now that growth is easing. It might be a better market for buyers but selling a property in a cooling market can be a challenge.
Last year, many buyers were driven by a fear of missing out mindset, but now is a great time for first-time buyers to take advantage of stamp duty changes in various states, as well as alternative tax options in the likes of NSW. Here’s how to navigate a cooling market and bag yourself a property you love.
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Key Asset Criteria
There’s no such thing as a free lunch – bear this in mind when you spot a bargain basement property. There may be a variety of reasons why it’s so cheap, including costly repairs that even a survey won’t highlight. A high-quality property will still attract demand in a softer market. So, set a realistic budget or you will miss out.
Buying a home is likely the biggest investment you’ll ever make, so it’s important to figure out how much it’s worth. In addition to the property’s technical value, you should think about the size of the land, its orientation, location, proximity, and position. The style and size of the building, as well as its state, are also things to think about.
If you want a townhouse or an apartment, parking is also an important consideration. Be sure to look at similar properties that have recently sold in the area and how much they went for. This is the best way to find out about the local market. You can also find out how many people have bid on similar properties at auctions in the area.
When you are property hunting in a rebalancing market you need a lot of patience. It’s the perfect time for a buyer, but sellers are hesitant to dip their toe into a cooling market. People will hold off on going to market so it’s up to you to keep in touch with agents so you don’t miss upcoming listings or off-market properties. As tempting as it might be to jump at the first opportunity, don’t jump in until you find the right property. The right agent will be able to tell you where the market is at, and where they see it heading.
Buy With Confidence
You should feel confident navigating the market and purchasing a house. Whether you intend to bid at auction or pursue a private treaty sale, do your homework on the property and the process. For example, if you’re at an auction, you can tell whether a property has limited interest if the initial seller bid is high compared to the quote range. In a private treaty transaction, you can use the building inspection report as bargaining power to acquire a fair price.
Essentially, when purchasing a property in any market, do your research first. Find the right location, shop around, negotiate on price, and don’t be afraid to walk away if it doesn’t suit.