Planning To Win In A Falling Market
Worried that the outlook for Sydney real estate seems bleak? There are a host of new opportunities opening up while the market is in decline. These are the best opportunities for home owners right now and how you can take advantage of them.
First Home Buyers
Entry level property prices are stable and still showing positive growth, but the market isn’t gaining as fast as it has in recent years. Some first home owners may have an opportunity to buy sooner than they planned – simply because their savings are growing at a faster rate than property prices.
Most analysts agree that we are in for a few flat years in real estate. With rising interest rates and cooling property values, first home buyers may have to hold onto their home for longer than they anticipated - carefully consider future property needs when developing a features list. Plan to be in the property for at least ten years.
Rate rises are likely to result in some over-extended vendors that are looking to exit suburbs that are already experiencing mortgage stress1. Hello Haus can negotiate on your behalf to secure bigger price reductions in these opportunity areas, getting you into your own home sooner.
Some entry level home owners will now find that their five-year property plan has become a ten-year plan to protect themselves from the next down cycle. Those who bought before the peak, however, could potentially trade up to a property listed in the $1.2million to $1.7million bracket by negotiating a sizable discount in the underperforming mid-market.
First or second home owners looking to trade up are well placed to do so right now provided that their property has increased in value and they are comfortably managing their current mortgage.
As well as developing a features list for their next purchase, upgraders should also create a list of features that first home buyers may be looking for, maximising these attributes in their current property’s presentation and marketing. Securing a premium price on their current home ensures that upgraders are taking full advantage of the savings and value that comes from selling up and trading up.
Properties that rate well for sustainability, lifestyle and liveability features are not only a wise choice, they are also likely to hold their value as millennials begin to buy up and demand more ethical and environmentally responsible housing. Look for these features not only in your next purchase but aim to maximise them in your current home’s marketing strategy as well.
There are two groups of Sydney downsizers who will benefit from listing now – those with a property valued at or below $1.1 million and those who are already struggling with the size of their mortgage.
Downsizers in entry level properties who have been thinking about making a sea or tree change are still well placed to secure a premium price on their sale as there are plenty of first home buyers about. Coastal and country properties haven’t felt the price freeze as keenly as Sydneysiders, so engaging Hello Haus to negotiate the sale should help buyers to maximise their savings and avoid paying top dollar on their next home.
Sydneysiders who are already struggling with their mortgage repayments and looking to downsize should do so before interest rates rise further. Those looking to re-enter the market at a lower price point, with a smaller home-loan, should carefully follow the steps to the Buying Process2, ensuring that finance1 is pre-approved by their lender before going ahead.
The game has changed and buyers with medium to longer term plans now have greater buying power than in recent times and are well positioned to outlast the next downturn. Agents and vendors are of course, aware of this shift and are working hard to maintain premium prices. Having an experienced property expert on your side during negotiations will ensure that you get the best possible deal. Hello Haus licensed real estate agents bring twenty years of property purchasing, sales and real estate experience to every negotiation and are the experts in saving you money.