Want the inside running on the specific areas to invest in for 2019? There is none better than Rich Harvey, CEO and Founder of Propertybuyer to point out those areas.
Check out what Rich has to say in the latest #proptechcarpool episode.
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Here’s the transcript of the video:
Opportunities in the market at the moment. You're obviously I guess boots on the ground every day. Yeah know what's going on. Let's say I'm a buyer looking at coming into the market what are the opportunities you're seeing at the moment? So 2019 there's a lot of big opportunities. We've had Sydney, Melbourne come down. Sydney around 12-13% Melbourne's come down about 9 to 10 percent. The rate of decline in the Sydney market is slowing. So I think we've probably got another 3 to 5 percent to fall. I think the big falls have already happened. In Melbourne I think it's about six months behind Sydney. I think Melbourne could drop another 7-8 percent. So that's my prediction of where I think the market is going but in terms of opportunities, it's a fantastic time for buyers to upsize or upgrade if you're selling say $1-1.5 million into property you'll lose a bit on that sale, but you'll more than make that up in buyer price. So you if can afford to buy a $2 million or $2.5 million home you know, there's substantial savings to be made. We just did one end of last year down the northern beaches. Price was 2.95, pretty close to 3 million we end up getting for just over 2.5. So we saved the client over $400,000 in the transaction. So, you know similarly on median priced properties around 700 you can generally get 5-7 percent discount if you know what you're doing. However having said that good quality properties are still trading well. A lot of people think that in this market they've got oodles of time to buy and that just by waiting they'll get a cheaper price. Even if it's a good quality property. But I say to them if you see the quality property today, it's going to be two, three or four other buyers that will also see that opportunity and they're going to jump on it. So even in a softer market there is still competition for quality properties. Yep. That's what we're seeing. So I think the opportunities are also for first home buyers because the markets come back quite a bit some suburbs that were just out of reach of a lot of homebuyers in that lower price range. In Sydney say 500 to 800 thousand dollar range. It's come back by almost a hundred grand in some suburbs. So now it's more affordable for those first home buyers. So speaking to a lot of brokers, they're saying a lot of their business is now with first home buyers. Also, I think the opportunity for first-time investors to get into the market. People with like a portfolio of properties are finding it very difficult to refinance their portfolio and very difficult to get additional loans. But I think for if you're a first-time investor, you've got a good job the banks are still lend money. They'll be checking your credit card statements, how many Uber eats you're doing but at the end of the day, you know, you still can't get a loan and I think the message to get out there to potential investors is buy while the market's soft. You know, I bought a number of properties during the GFC and they were fantastic. When everyone else is running the other way, I'm looking out, I'm being opportunistic. And I think Trent, the next 3 to 6 months is going to see the best buying opportunities for a long time to come.