Every turn of the hand on the property clock brings a unique set of challenges and advantages. While last year we worked incredibly hard to access stock and beat other buyers to the punch, this year brings a new set of challenges we work to overcome for our clients.
The biggest issues facing buyers at the moment:
- Lending for investors. Many are stuck and unable to move forward with a decent budget for a metro Melbourne property
- Higher budgets required for a metro purchase, pushing people further out
The investor market has contracted significantly leaving the market wide open for first home buyers to take a piece of the property pie, and investors with funds to purchase without strong competition from other investors. Coupled with this is the division between the types of properties and areas home buyers are targeting compared with investors, which provides both sets of buyers with some leveraged opportunities.
For investors we are beginning to see favourable conditions for land banking and renovations.
Home owners overlook these types of properties, but an investor can turn them into a property that will have high owner occupier appeal which leads to increased capital growth, and many investors can’t gain access to funds, meaning more opportunity and less competition for investors who are approved for finance.
Take advantage of these opportunities right now
- Barrier of entry has been removed for home buyers with a deposit ready to purchase – Home buyers should be using this time wisely to secure a home and not wait for “prices to fall” – it is more likely you will end up paying more and miss the opportunity.
- Land banking, ugly duckling + renovation investment strategies are now viable opportunities for investors
- Development sites will be easier to access for those with funds
- Access to off-market properties through a buyers agent has increased significantly
Investors
- For those with existing portfolio, revalue and extract equity
- Gain pre-approval ready for further acquisitions
- If you cannot get funds right now, wait for relaxation in lending and move fast once you can borrow
As soon as lending is relaxed we expect to see swift movement from savvy investors and competition will drive prices
Home Buyers
If you are hunting for your dream home right now, try to secure something prior to June. Once the colder months hit we will see a significant decrease in available listings and competition will be strong.
We say this EVERY year – this year will be no different. Stock volumes have already decreased compared with the same time last year. All you need is two committed buyers competing for the same property to drive up the price by $50,000 – $100,0000.
If you would like some help to ensure you secure your dream home before listing numbers drop in June, having a Buyers Advocate on your side could be advantageous to you. A Buyers Agent will get you access to more options, off market listings and help you identify properties that are on budget, fit your brief PLUS you will save yourself 10+ hours per week.
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