Adrian Tsavalas from McGrath returns to the series to break down the opportunities buyers can gain in Sydney right now.
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Here’s the transcript of the video:
I guess what advice do you have for buyers at the moment? Do they get their finances in order first? Do they speak to you first? Do they start looking at properties first? What's the first part that you would say? Well you can't buy property without money. So you need to ensure that either you've got the money sitting in the bank, which only few do or you align yourself with a good mortgage broker and they'll be able to give you an assessment. Some people might need to go on a finance diet, and prepare themselves and you know, make sure they don't get out too many times over the next six months and you know cancel unnecessary subscriptions like gym memberships. But, sit down with a broker, they'll help you plan. Once you know how much money you can get then you know how much money you can spend. Then you can identify which area you want to buy in and the category of property. So once you are completely vexed on what you can spend it's like going to Louis Vuitton if you've only got the budget for Kmart so you want you want to make sure that you've got enough money to buy the type of property you want or buy in the area that you want. So once you’re familiar with that, then you can make the next step. The next step is obviously, if you know a real estate agent in the area, to get in contact with them and also forge a relationship with a good conveyancer. So they'll be able to do things such as give you advice on contracts and what your legal obligations are as a buyer. Okay. So I guess why by is coming back to the market now? Obviously elections have finished but is it just available capital? Is it because interest rates have dropped? I guess what are the main kind of motivators? Most people feel like they've hit the bottom of the market and I agree with them. I think the worst is behind us and it's a recovery period now. They want to get in now before prices go back up, which I think is an amazing time to buy if you've got a pre-approval or you can turn one around over the next month or two, great time to get into the market. Money's getting cheaper. APRA is changing or could change their assessment rate quite soon and the buffer between, you know, the actual cash rate and what banks are assessing you on is likely to change too so it's still going to be harder to borrow money, but if you are proven a good borrower or a good candidate for a bank you're going to be able to get more so if you're on $80,000, single income, no kids, single bloke or lady, you could get $511,000 from the bank at the moment, but that's due to, you know, with nothing changing to your circumstances banks can lend you up to $600,000 now so, you know, 15% additional borrowing capacity, almost 20% -And I think by putting that sort of money on the table is going to go hand-in-hand with prices coming back to life. So we are starting to see recovery. I don't want to get ahead of myself, but we're seeing some good signs of recovery and, you know, the average number of buyers through an open home now. Over the weekend. I had an average number of 29. Going back 12 months ago, I had an average number of 12. Yeah, so it's big jump isn’t it? Well, it's over doubled, so it's great.