Here are some things to remember when shopping for property:
- The asking price has NO bearing on what you are prepared to pay, it is a guideline to what the vendor’s dream price is.
- Research is the key to knowing the market and being able to spot the good deals.
- Think outside the square, I have found a very exciting property that has subdivision potential. It probably hasn’t been spotted so far as the land would come off the front of the house not the rear. Also it is on a corner and the minimum land size reduces from a standard allotment size. The buy in price is still pretty high considering the values in the area but how do you put a value on a huge character home? This property is also very poorly marketed, I couldn’t find it on realestate.com.au or on domain.com.au and I had heaps of trouble even finding it on RPData! It was only because I drove past it that I did more research on it.
My observations of the market so far are (and feel free to contradict me) a relatively slow start to 2009, but still with quite a bit of interest in properties that are priced well and/or highly sought after e.g. character homes, western belt (in Adelaide) etc.
Finance is still the most dominant hurdle with purchasing so consider the finding of the property to be the easy bit, but with most people’s finance being full doc it shouldn’t make too much of an impact.
One of our coaching clients has had a brilliant purchase, congrats! Land at Moana (SA) with close to the ocean and views to the city, subdividable and a long settlement all for $205K. Land across the road settled recently for about $70K more. A Bargain.
The finance approval took longer than the council planning approval to subdivide even though it was a on-merit approval (non-complying). Yet again people thinking outside the square. This property had been on the market for more than 12 months, the block has a stack of fill and to build retaining walls would cost more than $30K but the purchasers are going to have the fill removed for around $7,000 the land subdivided, and each block will be worth around $180K. There’s a quick $100 profit for less than 3 months work! That’s more than 6 months income for this professional couple.
Remember to win contracts you need to put in offers. Aim for 5 offers this week. And remember to get advice from someone you trust if you are having trouble.
The information provided in the Talking Property podcast is general in nature and should not be relied upon as a substitute for professional advice. Always consult with a professional advisor before making any investment decisions.
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