The buying frenzy party in Sydney is over. All good things must come to an end. If you owned some property in Sydney before this last boom, chances are that due to the capital growth in the past 5 years, you became a property millionaire (if you weren’t one already). Figures we saw this week say that there are now 1.1 million millionaires in Australia. This would be due no doubt, at least in part, to the property market.
We believe that whilst there is still growth left in the market, it may be single digit growth only, as the market takes a breather. So where are the buying opportunities? In many respects the answer to that question does not change. Here’s what we see:
- Selling agents are calling us, where they did not need to before, to see if:
- We have any buyers (presumably because they don’t have)
- Trying to extract pre-auction offers from us (because they don’t have enough buyer interest to run an auction to the price they told their vendors they could get)
We are buying very well at auction where other bidders are more cautious, and in most cases for less money than we would have had to pay with a pre-auction offer.
- People still have to sell due to the 4 D’s
Distressed sellers always present an opportunity to buy property for under market value.
- Out of area agents that mis-price property
We recently purchased a property for at least $15-20K under what we believe the true value of the property was worth, simply due to the inexperience of an out-of-area selling agent.
- The time of the year. Most years we are running around exchanging contracts on Christmas Eve!
There are some good deals to be had by taking advantage of the fact that some sellers want a sale locked in before the Christmas holiday period so they have some certainty about their plans to move in the New Year. Watch out for properties advertised as “Upcoming Auction”. These sellers have missed the auction campaign for this year and won’t be going to auction before February next year. The selling agent has signed them up and is ‘babysitting’ them through this period but they may be open to selling now!
- Off market (or pre-market) properties can be purchased with little to no competition from other buyers due to our long term relationships with selling agents.
If you’d like to leverage off our contacts and experience to source good property, feel free to contact us.