Home News How to snag an A-list property in a slow market

How to snag an A-list property in a slow market

Font size :
Nila Sweeney
When it comes to real estate, cheap doesn’t always mean cheerful. We show you how to sort through the “bargain duds” to locate an affordable, high quality property investment that delivers profits well into the future.
 
It’s a buyer’s market out there, which means that would-be homeowners and investors pretty much have their pick of the property litter.
 
With fewer buyers in the market place and more properties available for sale, homes are taking longer to sell and anxious vendors are dropping their prices as a result.
 
Gloomy economic forecasts and uncertainty over interest rates is causing many buyers to pause, but savvy investors would be smart toact now and buy “while prices are low”, says David Cross, head of property research at The Investors Club.
 
“We have been through tumultuous times before and no doubt will again. It’s better to buy now when prices are reasonable than wait for the boom and be priced out of the market,” he says.
 
“As long as you are guided by a few important tips, you will yield good returns in the long term.”
 
However, Cross cautions investors not to rush in and buy property simply because it’s more affordable. He believes that research is imperative, and says the key to buying an investment property in any market is locating the areas in each city that have growth drivers.
 
“Some suburbs will do well even if overall city property growth figures are not favourable. Buy in areas with strong demand from renters; focus on areas with forecasted growth in population, employment, industry and infrastructure,” Cross says.
 
He shares hishot tips for buying a quality property investment:
 
1.Locate demand
Research ABS data to locate suburbs and areas with a minimum of 2% population growth forecast, jobs growth and infrastructure projects to match.This will ensure that your property is always in demand from renters.
 
2. Seek out short supply
Check with the local council to find out if there are more housing developments proposed for the area. Is there a restriction on supply coming through? 
 
3. Look for rental opportunities
Liaise with leasing agents to find out what type of property is in the most demand from that suburb. Is it housing or units?  Is it a three bedroom house or 1-2 bedroom unit? This will help to guide your buying decision. Also ask agents how many days properties are vacant before tenants are found; lower vacancy indicates short supply and potential for rental growth.
 
4. Use a cash flow analysis calculator
Regardless of how cheap the deal is, you need to make sure it stacks up financially for you and your personal situation. Use a cash flow calculator to confirm that you can afford to hold the property if the rates go up 2%.
 
5. Pay the right price
When you’ve shortlisted your property candidates, work out which property (if all other points are equal) gives the highest rent return.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

Choosing the right mortgage is hard for many first-home buyers Choosing the right mortgage is hard for many first-home buyers

Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

More mortgage news and articles

Sponsored Links

Monday, Jul 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords