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Property Investment Advice

Top tips for bidding in a hot property auction market

property auction market

The odds of being the successful bidder at a property auction can be improved by being well-informed and having a strategy, rather than just showing up and hoping for the best.

Auctions listings in Sydney and Melbourne are running at about twice the levels of 12 months ago, after the lifting of COVID-19 restrictions and as owners rush to bring their properties to market while there is still price momentum and before the holiday season starts.

A combination of seasonal factors and pandemic lockdowns saw the number of auctions tumble in July and August, before hitting a low in early September. Since then, listing volumes have been increasing by about 10 per cent a week across both major capital cities.

For the week to last Sunday, Sydney held 1577 auctions – the second busiest week on record – and Melbourne held 1891, its best week since late March, figures from CoreLogic show.

Preparing for an auction

Arjun Paliwal, the founder and head of research of buyer’s agency InvestorKit, says auction bidders need to monitor the most recent property sales until the time of the auction, as prices will have likely moved higher than they were just a couple of months ago.

“To minimise getting swept up in the action and paying more than initially planned, have a shortlist of several properties to fall back on,” Paliwal says.

“Not having all your eggs in one basket will mean you’re less likely to make a regretful over-purchase [by paying too much],” he says.

Cate Bakos, a buyer’s agent and the president of the Real Estate Buyer’s Agents Association, says some homebuyers may have to lower their expectations in a hot property market.

You should be prepared to compromise on cosmetic elements, but never light, orientation or location, she says. Buyers need to prioritise features, such as floor plan. “It’s the features of a property that you can’t change that matter most,” Bakos says.

“If a home has good bones and is structurally sound, an ugly duckling might be worth a second look, particularly if the neighbourhood is a good fit,” she says.

Communication is key

Bakos says it is good to get to know a property’s selling agent and the auctioneer as, if it appears that you have a good rapport with them, it can be intimidating to other bidders.

“It is also interesting how attire can create an image. Dressing a bit more formally can signal to other bidders that you can afford to pay a bit more,” she says.

And it is probably better not to have anyone standing with you who looks nervous, she says.

Patrick Bright, buyer’s agent at EPS Property, says bidders need set a clear limit on what they are prepared to pay before an auction and not get caught up in the emotion of the moment.

“Bids should be made with confidence and try to get a good view of the auctioneer, the agent and the other bidders, so that you can see what is going on,” he says.

Bright says if you are “nervous type,” consider getting help from a third party, such as a buyer’s agent or a trusted friend or family member who is experienced at auctions, to bid on your behalf.

Don’t feel rushed

It is important not to feel that if you miss out at an auction that it is the end of the world.

There are more auctions now and clearance rates are falling, creating more opportunities to buy, CoreLogic figures shows. That also means properties are likely to be on the market for longer, helping to tip the balance towards patient buyers.

Louis Christopher, founder of SQM Research, is expecting capital city home prices to peak in the first half of next year, with possible price falls as early as mid-2022.

He expects a catalyst for the falls to be further intervention by the Australian Prudential Regulation Authority to restrict home lending.

The regulator has forced banks to use more cautious interest rate assumptions when assessing new home loan customers. The change is expected to reduce new customers’ borrowing capacity by about 5 per cent.

 

Article Source: www.brisbanetimes.com.au

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Property Investment Advice

How to choose the right real estate agent to sell your property

property

Selling a property is a big life moment and having the right agent by your side can make or break both your experience and results.

Whether you’re planning to sell an investment unit or need to offload a beloved family home, there is so much to gain from choosing well – great agents positively impact the entire property selling process.

Don’t leave this crucial decision to the last minute. Here are four essential tips to engaging the right real estate agent for you and your property.

1. Research and results are king

This enables you to see who has the largest market share in your suburb. You can then begin looking at who within an agency is the most active, with one caveat:

“Does the agent you’re looking at have so many listings that you’re going to be one of say, 35, or would you rather be one of a smaller group so you have the agent’s attention and focus?” explains Col Bernasconi of McGrath Long Jetty.

“Your result will mean more to the agent with a manageable amount of listings, and there’ll also be less leakage of potential buyers”.

Another element to research is looking at recent comparable sales to discover which agents are nabbing excellent results for their vendors.

Ideally, you’ll want to shortlist agents with proven track records of great results in your area for comparable properties. If the information isn’t readily available, don’t be shy about asking for exactly what you want, like sale prices and time on market.

Ultimately, the proof is in the pudding: agents are notorious for putting on the charm, but you’re after results.

2. Local knowledge matters

Agents local to your area will be able to give you valuable insights about your neighbourhood. They’ll usually possess acquired knowledge of what’s recently sold in your area, what’s coming up for sale and the competition you’ll be up against once you list.

This area-specific knowledge also helps them in honing in on your target demographic, which can impact everything from marketing material and conversations at open homes to how they assess and respond to situations that may arise, like a property sitting on the market.

3. Be comfortable with an agent and how they operate

Once you’ve shortlisted a couple of agents, it’s time to interact.

There are two good ways of learning more about an agent’s character and way of working: #1 enquire online or call about properties similar to your own, which will help you see how an agent responds and follows up leads; and #2 the ‘mystery buyer’ method, where you head to a couple of their open homes to get a feel for their service and see them in action.

“If you enquire about a property and the agent doesn’t ring you back, they ring you back three days later or their assistant rings you back, that’s a pretty bad sign,” says Bernasconi.

“For an agent to represent your home, you want them available to talk to buyers quickly, answer queries and alleviate any concerns they may have.”

When at an inspection, Bernasconi says to look at how the agent engages with potential buyers. Are you a fan of their communication style and find them knowledgeable?

He also advises to pay attention to how they ‘sell’ the property to you as a potential buyer. Were they welcoming? Did they explain the features of the property? Did they talk to the positives of the area? Note also if and how they follow up post-inspection.

Connecting with an agent is important, as you’ll want to feel comfortable around them. This helps build trust, which creates a great working relationship when it’s time to sell your own home.

“You want someone who is personable, genuine and knowledgeable,” says Bernasconi. “But you also want someone who is honest and interested in creating a non-toxic team mentality based off of their expertise and the market, not unrealistic promises.”

4. Request an appraisal and discuss commission

It’s in your best interests to request an appraisal from two or three agents you’re considering working with. This will help you understand the market value of your property, from their perspective. Cross reference this with your earlier research on what the recent comparable sales are in your area.

Once you’ve honed in on your top candidates, you may then request the agents put together their selling strategy for you by way of an inspection report and agency agreement. This will enable you to see how they plan to sell and market your specific property.

The document usually includes a property valuation, the listing price they’d suggest and why, what marketing mix is recommended, transparency around costings and whether or not they suggest auction or private treaty.

You’ll also want to discuss and negotiate their commission rate. Let them work for your business and see what they can offer you.

However, a lower commission isn’t always automatically better – cheaper agents may focus on just getting a house sold, as opposed to getting you the best price. Try to look at the complete picture of what they can do for you. For information on how much it costs to sell a house, including agent commission rates,

With these four tips in your agent-finding arsenal, you’re setting yourself up for a great result. Best of luck.

 

Article Source: www.domain.com.au

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Property Investment Advice

What to ask agents when being taken through a display suite online

agents

Here at Urban, we have compiled a list of questions so prospective buyers can get a handle on what they should be asking agents during online inspections, useful both during lockdown and for those buying out of state or internationally

Australians have been staying at home on and off during the intermittent lockdowns and for homebuyers, this means a delay, sometime indefinitely, in purchasing property.

However, data in both the first Melbourne lockdown and beyond shows that online visits and enquiries of property listings have surged by over 50%.

Here at Urban, we have compiled a list of questions so prospective buyers can get a handle on what they should be asking agents during online inspections. This is useful both during lockdown and for properties available for purchase off-the-plan, or available across state or national borders when in-person inspection may not be possible.

For a more in-depth guide on off-the-plan buying check out our expert guide.

1. What’s the cost per square metre for each floorplan configuration? (make a note of this and compare to other properties you virtually view)

This is vital information to compare the value of the property to others in the area as well as the suburb/region you are looking to buy in. It is important to make sure you are buying a property that suits your needs and has room to grow, one marker of such potential is if the $/psqm is below median for the area, however it isn’t the be all end all

2. When is construction slated to start/be completed?

Construction projections are important information as it will have an effect on how long you may rent or choose to settle on your current property. Ensure the builder/construction firm is reliable and has a good reputation to reduce the likelihood of delay.

Keep in mind that some delays may occur if a coronavirus outbreak occurs.

3. Which items within the display are included and which are optional upgrades?

Straightforward enough, make sure you don’t get blindsided and chuck out your old washer/dryer just because the display suite has one, double check with the agent to see what is supplied by the developer as some offer white-goods packages and optional deals.

4. What customisation option do you have available?

Depending on the design firm and developer, some firms offer a higher degree of customisation, this tends to increase linearly with price as the more expensive the property is, the more customisable it generally is. Either way you should ask as many developments offer at minimum a choice in colour pallete and fittings

5. What’s the ceiling height? (compare this to your own ceilings at home)

While this many not mean as much to someone who is 150 cm tall, for prospective basketball players… and everyone else, it’s worth knowing ceiling height as this can impact whether the home feels claustrophobic or spacious and airy regardless of your personal height.

6. Which aspect does the particular apartment I’m considering buying face? (take note of where the sun is throughout the day in your own home)

This is important for natural light purposes, as well as potential views as some apartments will offer a better aspect than others.

7. Who built the display suite and will they be constructing the actual apartments/townhomes?

A vital point of note is the builder, don’t misunderstand something because of an unrealistic display suite.

8. If taking a virtual tour, ask the agent to zoom in on details so you can see the build quality

If the builder doesn’t put their best foot forward with the display suite, it is worth asking the agent about it and whether other properties you have looked at demonstrate better build quality or detailing.

 

Article Source: www.urban.com.au

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Opinion

Brisbane suburbs to watch in 2019

brisbane suburbs to watch in 2019

Brisbane suburbs to watch in 2019

These are the suburbs to watch in Brisbane in 2019, where a window of opportunity exists to get in ahead of demand driving prices up.

These are the suburbs to watch in Brisbane in 2019, where a window of opportunity exists to get in ahead of demand driving prices up.

The list, compiled via the Price Predictor Index by Hotspotting’s Terry Ryder, tracks increases in sales demand — which is generally considered to be a precursor to increased prices.

“This precedes the price reaction,” Mr Ryder said. “Where there are sales increasing, prices will follow eventually.”

For buyers, rising demand can be a handy early warning system, particularly if suburbs they are interested in are on the list of those seeing steady rises.

“It’s a chance to buy in areas that are rising before prices really take off,” he said.

The Moreton Bay region was still the top market in Greater Brisbane in terms of rising suburbs — with seven on the list including Kippa-Ring which also made the national top 50 list.

suburbs in brisbane to watch in 2019

Brisbane is becoming a haven for cyclists with more appearing across the suburbs as infrastructure improves. Picture: Bruce Long Source:News Corp Australia

The Brisbane-south region came in second with five rising suburbs, followed by Brisbane-north and Redland City, both with four growth suburbs, while there were just two rising suburbs in Logan City.

Graceville and Indooroopilly were named along with Kippa-Ring as the top three suburbs in Brisbane.

“The whole premise is there is a time lag from when sales activity rises and prices go up,” Mr Ryder said.

“If you are already in an area where sales activity is picking up strongly, well that’s good because you are ahead of the strong price rises.”

Mr Ryder expects improvements in the Queensland economy including rising infrastructure spending — much of which was focused on inner Brisbane — to have a strong positive effect on the housing market.

suburbs to watch in 2019

Opening of Howard Smith Wharves precinct parklands and Cliff-face lift in inner Brisbane. Picture: Liam Kidston. Source:News Corp Australia

“Brisbane has definitely lagged because it hasn’t had the same drivers that Sydney and Melbourne have had. I do expect Brisbane in the coming year to be stronger than it has been.”

“We’re seeing that big infrastructure spend, population growth data is favourable as well, with Queensland now the number one state for net gains for interstate migration — and 90 per cent of that goes to SEQ. Those are all things falling into line for a rise.”

29 suburbs to watch in Brisbane in 2019:

(Alphabetical order)

Suburb/Municipality/Dwelling Type/Current Median Price

Albany Creek Moreton Bay H 585,000

Alexandra Hills Redland H 470,000

Annerley Brisbane-south H 720,000

Bald Hills Brisbane-north H 440,000

Banksia Beach Moreton Bay H 560,000

Bethania Logan H 365,000

Burpengary Moreton Bay H 465,000

Camira Ipswich H 407,000

Cleveland Redland H 620,000

Clontarf Moreton Bay H 445,000

Corinda Brisbane-south H 745,000

Eatons Hill Moreton Bay H 600,000

Geebung Brisbane-north H 545,000

Gordon Park Brisbane-north H 845,000

Graceville Brisbane-west H 905,000

Indooroopilly Brisbane-west H 905,000

Indooroopilly Brisbane-west U 475,000

Kenmore Brisbane-west H 700,000

Kippa Ring Moreton Bay H 430,000

Logan Reserve Logan H 410,000

Mansfield Brisbane-south H 680,000

Mt Cotton Redland H 550,000

Ormiston Redland H 680,000

Redcliffe Moreton Bay H 440,000

Redcliffe Moreton Bay U 415,000

Stafford Heights Brisbane-north H 605,000

Sunnybank Hills Brisbane-south H 680,000

Tarragindi Brisbane-south H 775,000

Tingalpa Brisbane-east H 555,000

Wakerley Brisbane-east H 755,000

Wynnum West Brisbane-east H 540,000

(Source: The Price Predictor Index)

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