In keeping with our desire to encourage those in the Evalesco community to look past the noise in the press (whether it’s positive or negative) we recently asked Buyers Agents Ramon Cura and Julie Garis of Cura Property for a property “State of Play”. Together they came up with 4 things you need to know when buying property in the current market.
4 great tips when buying property, with Ramon Cura.
After what’s been almost two years of strong demand, we are now seeing more property coming onto the market at a time when sellers worry whether prices have peaked. Lenders are also more strict with how they engage with and lend to investors, requiring investors to now contribute larger deposits and also charging higher rates of interest as an investor or when they use interest only loans. Along with the traditional peak property time of spring, buyers now have more choice in the number of properties available meaning less competition as buyers will be spread across more properties. Buyers can now be more selective about the property they wish to buy, so please don’t just jump on the first property you like.
Property is a long game, so be prepared to wait for the right property and research what is happening to prices in the areas you are looking.
Negotiate to buy before auction
Sellers are starting to get a little nervous about auctions as we have seen auction clearance rates have fallen from over 80% to 70% or below in the last few weeks. As a result real estate agents are now advising their vendors to temper their expectations of achieving over the top sale prices, expect fewer bidders and be open to a selling before auction. This means you may be able to secure a property before the stress of attending an auction. A word of caution however as bank valuers are also noticing the change and will adjust valuations accordingly, so be careful not to be over-zealous with your offer.
What is your strategy?
There are so many things we can discuss in the area of property tactics, but the most crucial question relates to what is your plan and or strategy? That’s why Ramon and Julie recommend that their new clients meet with a Financial Planner to create a plan that has short, medium and long term goals and incorporates an objective look at their overall finances. This is a crucial step, and this part of the process only works because both of our teams acknowledge that conversations should never be about shares or property – people should have some of each, whilst ensuring they keep some money aside for tough times and fun stuff.
Seek the assistance of a buyers’ agent
Bidding at auction is stressful and emotional. A buyers agent, who can bid on your behalf and take the emotion out of the process will give you the edge you need to win the property you want to buy. The reason for this is that they are experienced in the science, art and psychology of auction bidding. They will also help ensure you don’t attend auctions you have no chance of winning by comparing the property price guide to to other property sales in the market, therefore saving you time and money.
Thanks again to Ramon and Julie for sharing some great tips and ideas with us!
Don’t forget when you are next considering anything to do with property come and see our team so that we can fine tune your plan, strategy and finances before making a time with Ramon or Julie for some guidance as to the right property for you.