Blog

1. Upgraders

The gap between what they sell and what they buy shrinks in a buyers market. This is a good thing!
The opportunity you have been waiting for!
First mistake – waiting to see what’s going to happen in the market instead of grabbing the opportunity. They’ll wait until prices rise again before they do anything, which means the window has closed.
Lower Transaction Cost!
Second mistake – fixating on the sale price of their own home. Instead, focus on the big picture – the total transaction cost of the sell/buy/move.

2. First Property buyers

First Property buyers can really take advantage of falling prices and less competition from investors in a buyers market.
Shiny & New
First mistake buying brand new. The RISK – you pay too much, lose money, builder might go broke. Existing property with potential to add value will serve you better in the long run.
Bank of Mum & Dad
Second mistake – getting advice from your parents. Well meaning parents like to be the font of all knowledge for their kids but often they are not that experienced themselves. Also, they often help their kids pay too much. Be very aware of the limitations of relying on your parents for advice.

3. Property owners with no investment properties

If you bought a property  more than 10 years ago, you could be sitting on a good chunk of equity. Depending on your income and other liabilities, you might be able to access this to buy an investment property to help you build your wealth and establish long term financial freedom. luck happens when opportunity meets preparation.
First mistake – not even looking for opportunities in a buyers market.
Second mistake – thinking the risk is in the borrowing and not the asset. Not all investment properties are good investments. . People often borrow a small amount of money and buy a low quality asset instead of focusing on doing their numbers around a low risk asset, which might require them to borrow more money.
Good advice is valuable!
Third mistake – getting advice from the wrong people. Friends and family are not great sources of advice. Usually, there are 5 advisers needed to fully understand your options – but only one can advise you on the actual property. the real estate agent, of course. The other advisers you’ll need are: Accountant – Mortgage Broker – Financial Planner – Lawyer.

4. Cashed Up Buyers

Individuals that are cashed up are buyers who have sold and haven’t yet bought! So, what are you waiting for? This type of buyer has a lot of power in a buyers market, however, you only get one shot at buying the right property. Make sure you choose a high performer, in the right location at the RIGHT price!

Chady Melhem | Property Consultant

Call me for any advice you may need!

A home is typically the largest single investment you’ll ever make, By the time you’re ready to buy, you’ll already know a lot about the house. However, it’s a good idea to do a little more detective work and get answers to a few investigative questions. It will give you additional peace of mind in your purchase.
Here are the 8 investigative questions to ask;

1. Why Are You Selling?

2. Length of Time on Market

3. Previous Selling Prices

4. What Is Included in the Sale?

5. Area or neighbors problem

6. Natural Hazards

7. Past Problem Conditions

8. Age Of Components

The Bottom Line

Property buyers need to know how to make an offer on an apartment so that they don’t act too fast and overpay or, conversely, muck around and end up missing out to another buyer.
The fundamental rule to follow under most circumstances is not to make an offer until you are ready to sign. So, what do you need to do to get ready?

First and foremost – get your finance approved and deposit arranged!
When you find the property you want to buy, recognize that your emotions are probably driving your decision making. For instance, don’t let fear of missing out lead you into paying too much. In a slow market agents often encourage buyers to make offers. Before you do, step back and really consider how strong the market is and whether it is competitive or not.

That said; work with the agent, not against. Don’t play games – it’s unlikely that you’ll be able to out-play the player. Let them know you’re interested and ask them what their negotiation process is. Agents do have favorites and they are more likely to give you information if you show them respect.

Set your maximum limit and true walk away price BEFORE you start negotiating.
There are 5 elements to consider when setting your maximum price:

1. Your price research and where this property sits in the market
2. Whether the market is hot or not
3. How popular this type of property is
4. How uniquely it suits your needs
5. What you can afford.

Lastly: don’t forget to walk away if the price goes over your pre-set limit!

It is important to recognize that sometimes the actual price is not the most important thing to a vendor. Consider the terms of your offer. It’s a good idea to ask the agent whether the vendor has any specific conditions that would make your offer more favorable. For example, a long settlement might suit a vendor who hasn’t yet bought, or maybe you could offer a rent-back period. While a short settlement might appeal to a vendor who has already bought their next home.

Chady Melhem | Property Consultant

Call me for any advice you may need!

When buying a home, about 90% of your purchasing decision will be based on emotion and only 10% on logic even thought i learned that buyers become experts in their price bracket for the period of time in which they are seriously looking for a property. They have an intimate knowledge of what they can get for their money.Real estate can be profitable when people have the knowledge to make wise investments.

You, as a buyer, will most likely have personally inspected every property that suits your requirements, including those slightly above and below your budget. After a period of intensive property searching, you will probably know instinctively a property’s value immediately upon entering the front door. You will also get to know the most active selling agents in your area and begin to glean additional information from them.

This knowledge can be extremely useful when it comes to negotiating a deal and can help you to avoid making a poor property purchase. My advice is to always make a decision after acquiring as much knowledge as possible about your chosen market. But this knowledge does take time to accrue where you cant make an early decision.

If you have only recently started looking and have found what you think is the perfect property, Consider the time it takes to find the right property in which to invest, be aware that your lack of knowledge may cost you – either by missing out on your dream home or by paying too much for it.

On the flip side you need to ensure that the property you are buying is going to be a good investment and that it is not going to be one of those that  makes you lose your money, but you cant keep looking for ages, you might get fed up and settle for something that is not ideal, or make the mistake of thinking that you simply have to pay whatever it takes to buy something… anything!

You need to ensure you gather as much information on what’s happening behind the scenes as possible, understand the sellers motivation and know how to negotiate your terms with the agent.  It is a full time commitment, it is hard, so maybe it’s time to call in the professionals…

Chady Melhem | Property Consultant

Call me for any advice you may need!