Those who bought property in Sydney prior to 2013 are quietly patting themselves on the back right now for making such an astute investment decision.
Their property has likely increased in value by up to 50 per cent over the last few years, and although property price growth in Sydney has calmed down, that real estate market is still moving in the right direction.
But if you’re interested in buying property in Sydney today – or in any other rising real estate market, such as south east Queensland – how can you go about getting a good deal and gaining the upper hand during price negotiations?
First of all, you need to understand that if you enter the market at the wrong time in the cycle, it’s going to take you a little longer to reap the rewards of your investment, says Christine Williams, principal of Smarter Property Investing.
“If someone buys at the lower or bottom end of the cycle before the area sees a rise in the market, there is a very high possibility of doubling your money within 8 to 10 years,” she says.
“However, if you enter on the higher side of market you will still eventually double your money, but you may have to wait more like 12 to 15 years,” she says
How to secure a good deal when prices are high
As Williams explains, buying property in a rising market means you’ll likely need to wait a little longer for your investment to grow.
If that suits your investment strategy and you’re still keen to secure a piece of the property buy before the market peaks, the following tips can help you on your way.
1. Make sure the property is a good deal
Research is key to finding a good property, whether it is your dream house or an investment property, says Melissa Louis, director of Imperio Investments.
“To find the most suitable property you need to undertake thorough due diligence, including looking at comparable sales. This is the tedious and strenuous part, but if done correctly, it can help you save thousands of dollars,” she says.
“Sales reports… may aid in the research, as they indicate market value and offer a detailed analysis and information about the property.”
2. Make a compelling offer
Ideally, in order to make an offer that is too good to refuse, you need to be “asking the right questions to find the owners who are desperate to sell”, Louis advises.
Some questions that may help you paint a clear picture of the vendor’s situation include:
– Why is the owner selling?
– Have they had any offers on the property?
– Was it an investment or owner-occupier?
– How long has the property been on the market for?
“People who ask ‘why, what and how’ questions are often the ones who are extremely good at negotiation,” Louis adds. “Try and make the first offer, as you are then positioned to submit a counter offer if there is a higher bidder.”
3. Make multiple offers
Don’t get emotionally attached to any one property and instead, put in low offers on multiple properties.
“This is the key to securing a great investment,” Louis says.
“By using this strategy, you are uncovering which owner needs to sell ASAP. Remember, the more offers you make, the more opportunities you will create.”
The above steps will help you gain the upper hand as a property buyer, but if you’re time-poor and keen to invest sooner rather than later, Louis suggests you consider using a buyer’s agent.
“They have access and experience in researching, analysing and negotiating in property, which can save you time and money,” she says.
The information in this article is general information only and does not constitute financial or legal advice. This does not take into account your personal circumstances and accordingly you should seek independent financial and legal advice before taking any action, or refraining from taking any action in reliance on any information contained in this article.