Trying to secure your dream home in a fiercely competitive market?
In a recent analysis of real estate growth in Sydney by Cameron Kusher from CoreLogic RP Data, “Sydney and Melbourne are the only capital cities where property values have grown faster than inflation over the past five years”. Kusher goes on to explain that “analysis of the Australian Bureau of Statistics (ABS) Consumer Price Index (CPI) for March 2015 quarter showed headline inflation for the quarter as 0.2%, taking annual inflation to 1.3%. Over the past 12 months to March 2015, nominal home values across the combined capital cities increased by 7.4% however, including inflation, this moderates to 6.0%. Across Australian capital cities , real home value growth over the past year has been below 1.5% in all cities except for Sydney (12.5%) and Melbourne (4.2%)”.
With such high demand for quality properties, prices going up and properties changing hands fast, if you are continually being pipped at the post, try these tips on securing your new home:
1. Never wait for ‘the one’ before researching – stay ahead in a competitive market by ensuring you have done your research well in advance. Know the property market of the area you are interested in, including the values, so you can act quickly when your dream home becomes available.
2. Become friends with your agent – in order to beat rival buyers for those choice listings, it is essential you are in constant contact with your agent. In a red-hot market, agents have plenty of motivated buyers so it is in your best interest to ensure you stay in touch. This means being on all of their email databases, property alerts, speaking with them at least weekly and attending as many inspections as you can. Provide them with as much information as possible on what you are looking for, including examples of properties you would purchase if they ever became available. Waiting for properties to come onto the internet means that you may miss out on ‘off market’ opportunities. Building a relationship with your agent will keep you top of mind.
3. Make auctions part of your routine – apart from making you more aware of how auctions work and comfortable with the process, you may come across an opportunity that lands in your lap. Results can sometimes be unpredictable. Arrive prepared and take your cheque book but remember that there is always another deal.
4. Remember the 3 F’s of first, fast and fearless – avoid the rollercoaster ride. By applying the above 3 points, in particular bulding a relationship with yur agent, it’s easy to be fisrt. Being fast does not mean making rash or ill-informed decisions, rather, knowing where to access all of the relevant information quickly when your dream property becomes available. Remember to not let ‘fear of loss’ cloud your judgement – keep a cool head.
Information courtesy of Cameron Kusher and Caroline James, writers for realestate.com.au