With so many opportunities in the current Perth and Darwin property markets, investors should ensure they are doing their due diligence before making an offer.
Blogger: Shane Kempton, CEO, Professionals Real Estate Group
In areas of Australia such as Perth and Darwin, there are now an abundance of properties for sale, which means that now is a great time to buy real estate in these markets.
However, property buyers still need to be selective, do their research and consider key issues, such as:
1. The cheapest is not always the best. Focus on locations that deliver high rates of capital growth over the long term, ie properties near the city, river or ocean.
2. If you are a first-time buyer, for example, it is better to buy a small unit in an area that traditionally delivers high rates of capital growth rather than a large house in an outer suburb that historically records lower rates of capital growth.
3. Try to avoid areas with a high number of rental properties. Suburbs with a high rate of owner-occupiers generally tend to have better street appeal, which helps with the resale of the property.
4. Check high capital growth areas that have fallen the most during the past year. These will tend to rebound strongly once property prices begin to rise.
5. Pick suburbs in these areas with a high number of properties for sale that are in your target price range.
6. Find a street in a target suburb that has a number of properties listed for sale. Generally, there will be greater competition among these sellers.
7. Speak to the selling agent to determine if the owner is a motivated seller, ie an owner may want to sell urgently as they have moved overseas.
8. Consider getting an independent valuation of the property. If the valuation comes in below the listed price, it will give you greater negotiation strength with the vendor. However, if the valuation comes in around the listed price, it will give you peace of mind that you are not paying too much for the property.
9. Try to have pre-approval finance. This will encourage the vendors to accept your offer.
10. Set a deadline for the acceptance of the offer, ie 24 hours. This will put pressure on the seller to make a decision.