When September hits, the property market often blooms and plenty of Australians rush in ready to buy. But what can buyers expect this year?
According to one expert, investor procrastination means that other buyers may have a better chance of success in this usually busy buying season.
“What we’re seeing from the investors is increased activity from investors in terms of inquiry and interest, but people aren’t keen to take the jump,” Ian Hosking Richards, director of Rocket Property told Australian Broker's sister publication Your Investment Property.
“I’m finding a lot of people think the market isn’t going to move much in the next three months and there doesn’t appear to be that sense of urgency,” Hosking Richards he said.
This is great news for owner occupiers and first-time investors as it means markets conditions hopefully won’t overheat and there will be more property options available without the chaos of too many buyers.
What we’re seeing from the investors is increased activity from investors in terms of inquiry and interest, but people aren’t keen to take the jump.
Should I buy this spring?
More properties are usually listed in spring, meaning more options to choose from
The cash rate is currently sitting at a record low, so it may be more affordable for you
Spring brings a lot of competition and often results in an overhaul of buyers in the property market. This can make it harder to compete for a property
Possible property price increases. According to Core Logic RP Data, new residential property listings across all eight capital cities for September 2015 were at their highest since March of the same year.
So what can you do to get ahead of the other buyers this spring and bag a bargain quickly?
Have strong relationship with a real estate agent
Some of the benefits of having a strong relationship with a real estate agent include:
- Being the first to hear about new properties that come onto the market
- Access to any off-the-market deals
- First chance at making an offer on a property
- Access to someone who has thorough local knowledge and who can answer questions
This can be done by regularly contacting real estate agents about properties that are up and coming. You could also use an experienced buyer's agent who has a pipeline of 'off-market' opportunities that other buyers do not have access to.
Know what the sellers' motivation is
Although the price is one of the main factors when a vendor sells their property, it is not the only factor you should research.
- Why are the vendors selling?
- Are they investors?
- Are they home buyers who have already bought another property and want to sell quickly?
- Are they a divorced couple looking to move on as soon as possible?
You may find that by offering the seller a longer or shorter settlement, it could be more attractive to them compared to a higher price, so it's worth trying to find out their reason for selling and most buyer's probably won't go to that extra effort.
Be prepared to act quickly
Many home buyers don't realise how quickly they need to act when buying in a hot market. Some home buyers will inspect the property, go home and run the numbers and then come back the next week for another inspection. But in a hot market, a property can be gone in less than a day. It pays to do your research early and be financially prepared before you inspect the property so that you will be a prepared buyer, ready to secure the property on the spot.
Apps are a great way to do your research on the go. Check out our blog Top 5 apps for buying property this spring for our favourite apps.
Be financially ready
It is extremely important to have a pre-approval before making an offer on a property. Often real estate agents will ask if you have pre approval to demonstrate to vendors that you are a serious buyer. A formal pre approval will also allow you to move ahead quickly once your offer is accepted as a lot of the paperwork has been completed.
Do it yourself
To get a quick indication of whether the property you are looking at is affordable try our Online Pre-qualify tool. It only takes two minutes and gives you an instant result on-screen and an email confirmation of the details - perfect for when you’re out and about.
At State Custodians, we understand how difficult it can be to purchase in a hot market and aim to make the home loan process as easy as possible so that you can focus on finding your dream property.
Give our friendly team a call today on 13 72 62 or leave your details here for a Lending Specialist to contact you.