People everywhere are speculating about what's going to happen next in the property market, but no one knows for certain. Here's how you can master the market, no matter what's in store
People everywhere are speculating about what's going to happen next in the property market, but no one knows for certain. Here's how you can master the market, no matter what's in store
The Australian economy may be in a difficult position at present. Interest rates are incredibly low, the inflation forecast is also low, job growth low and unemployment is high – presently at 6.4 per cent and increasing. So it is understandable if you are not bursting with confidence about a property decision.
But if you are considering a property, now may be a perfect opportunity. With informative due diligence you can equip yourself with confidence.
Here we share our thoughts on how to ensure confident property decisions with a strong negotiation position and a ready-to-go financial position.
Knowing if the property you are interested in is the best property in your chosen location, style and/or price point can be difficult, but in a few simple steps you can increase your knowledge and confidence in a property and ensure you know more than the seller or their agent during negotiations.
Drive around the area and gauge:
1. The style of the neighbourhood and monitor how you or a tenant may ‘feel’ when in the suburb
2. What are the community services available? For example shopping centres, education, transport (trains, expansive roadways, airports), cafes, restaurants, fitness centres
3. What style(s) of property are in the area?
4. Which are the best streets and why? And which streets are not and why?
5. Is there property currently for sale? Where, what and how much?
6. Is there property currently for lease? Where, what and how much?
Try to view multiple properties within the same area so you can gauge common styles, layout/floor plans, land size, land shape, house size, house position on the land, void size and percentage.
Then:
• Speak with the local selling agents to get to know the area and what’s happening in the area.
• Research local and recent property sales, including days on the market and the key selling agents in the area so you can contact them
• Find out the supply and demand and rental yield of the area or suburb
• Speak to the local council or a councillor to gauge what activity or issues are in the area – or even the local café owner!
The key to bringing confidence to property decisions and a strong position to negotiate is to source and consider reliable and accurate information. Much of this information can be sourced as public information, which is wonderful, and/or from property data research companies.
Information can be difficult to find if you are not familiar with how the systems operate and the research can take a significant amount of your time. If you love property research and the thrill of information, then go for it and enjoy it; we do!
However, if your time is more valuable to you or better invested in other areas of your life, you may wish to consider a buyer’s agent to help complete all the due diligence on your behalf.
Kristy Smith
Kristy is the owner and principal of Agility Property. Following her first property acquisition at the age of 22 in Sydney, Australia, she has continued to grow her portfolio over the years. Now a decade or so on Kristy is degree-qualified in Business, Human Resources and Legal, Certificate IV Property Services, and as a licensed real estate agent in Queensland, she is business minded with agility.
