How to save a tonne of money when buying a property

Think about these tips when search­ing for a  prop­erty in a depressed market.

Buy­ing invest­ment real estate when the mar­ket is down can be remark­ably lucrative.

Shaving a tonne off your mortgage

But you still have to look closely to make sure you’re get­ting a worth­while deal in a buy­ers’ mar­ket — and clever prop­erty investors won’t be so dazzled by the oppor­tun­ity of a ”bar­gain” that they over­look their long-term mas­ter plan.

In a sellers’ mar­ket almost any price an owner puts on a prop­erty may res­ult in a sale and such great con­di­tions tend to cam­ou­flage ”over-optimistic” prices.

In a depressed mar­ket, it’s much sim­pler to buy prop­erty at more sens­ible prices because there’s more home on the mar­ket than ser­i­ous buyers.

Real estate isn’t a simple mar­ket, though. There are many sub-markets that oper­ate indi­vidu­ally, even dif­fer­ent streets.

Qual­ity prop­er­ties in par­tic­u­lar areas can still sell within 24 hours of being advert­ised on the mar­ket, whatever the cur­rent pos­i­tion of the mar­ket, it is so essen­tial you get edu­cated with buy­ing strategies used by smart prop­erty investors.

Buy always in demand properties

Smart invest­ment prop­er­ties to buy are the ones that will always be in demand for the aver­age per­son in that area. For most investors, this means obtain­ing a prop­erty that’s close to the city centre. For oth­ers it may mean choos­ing houses or units priced at near the median price for their areas close to amen­it­ies. Nor­mally owner-occupiers and investors love these types of dwellings.

Loc­a­tions that per­form above the aver­age over time nor­mally have a high land area and are usu­ally your best choices.

With units, the rule to go by is to go for an apart­ment in a very popular/convenient loc­a­tion with eat­ing places and train sta­tion nearby. It should be in a well-constructed build­ing with a high land-to-unit ratio.

An extra tip investors don’t think about

Find a unit that has some­thing unique about it and that other units don’t have. This will help you with the resale of the prop­erty and make it more desir­able than the 100s of other units in the area.

Pres­sured sellers

Many sellers have been knocked around by changes in their situ­ations. While mort­gagee sales are a clear indic­a­tion of the real estate mar­ket slow­down, you also need to be on the hunt for other sig­nals of sellers that are fin­an­cial underpressure.

The num­ber of mar­riages apply­ing for divorce nor­mally goes up in times of fin­an­cial dif­fi­culty. Other sellers give up on prop­erty own­er­ship and go back to rent­ing. You don’t always find out these cir­cum­stances at the first time you meet the agent. But if you nudge him or her and ask the cor­rect ques­tions, you’ll secure know­ledge that may help you buy a good prop­erty at a sur­pris­ing price.

Avoid spec­u­la­tion

It’s mad to buy a home at below mar­ket price if it’s in an area where prices are indic­at­ing a drop. Some prop­erty coaches teach that this is not a good time to guess or to rely on the ripple effect to push up cap­ital growth in sub­urbs on the edge of proven growth suburbs.

Prop­erty gam­blers do there best when mar­kets are going up. With the num­ber of prop­er­ties on the mar­ket grow­ing in many areas, your chance to make a profit by spot­ting prop­er­ties in mature sub­urbs is higher. Why take the risk on an unre­li­able area?

Search for mul­tiple advertisements

Selling a prop­erty with more than 1 agent shows a des­per­ate vendor. Because no single agent has an exclus­ive to sell the prop­erty, you should able to eas­ily buy dir­ectly off the seller. This can get rid of step $20,000 or more in real estate agent’ selling fees from the trans­ac­tion. You need to step care­fully on doing this because leg­al­it­ies could be involved, how­ever. Many of these sellers desire an agent to fin­ish off the final sale. You can even ply one agent off one another, by see­ing which agent will sell it to you the cheapest.

This hap­pens because all the agents will be des­per­ate to sell it to you, as they are com­pet­ing against the other agents advert­ing the same prop­erty. At the end of the day, the real­ity their prop­erty is advert­ised with sev­eral real estate agents shows they want to sell and fast. Unfor­tu­nately this works very quickly against the seller.

Go fast, go slow

A buy­ers’ mar­ket means buy­ers are more in charge than sellers. It’s easier to nego­ti­ate a slow set­tle­ment on a prop­erty sale but don’t over­look that speed is also a valu­able bar­gain­ing tool. In a very slow mar­ket, cash is best. A seller may settle for some­what less for a fast set­tle­ment com­pared with some other higher offer on slowed terms.

If you have dis­covered a prop­erty you desire and have com­pleted your usual plan­ning and check­ing meth­ods, a cash is king uncon­di­tional offer and a fast set­tle­ment can some­what reduce the price you pay.

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

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