June 2014 - Is Winter a good time to Buy or Sell?
By Rich Harvey, Managing Director propertybuyer
Welcome to your June propertybuyer market update.
In this edition we look at:
- Is Winter a good time to Buy or Sell?
- Client Stories
- Homebuyer Show - Free ticket offer
1. Is Winter a good time to Buy or Sell?
While the last of the autumn leaves are falling, the property market looks set to ride out the winter months with more oomph this year. In the traditional real estate calendar, the winter months typically see some hibernation behaviour by both buyers and sellers with the onset of colder weather.
However, this year the Sydney property market is likely to see strong results off the back of a hot market in the summer and autumn seasons. RP data reports that the recent fall in dwelling values is partly seasonal but can probably also signify a change in housing market conditions towards a more sustainable level of growth going forward.
Auction clearance rates were above 80% for many months at the start of the year, but now dropping back in the low to mid 70% range. Dr Andrew Wilson (APM Economist) believes winter is shaping up to see a significantly higher number of property sales and auction clearance rates than in previous years due to the energy, confidence and enthusiasm of the Sydney market.
Why Buy in Winter?
Buying a home in winter means you can get ahead of the market and avoid the spring rush. In the winter season there are typically fewer buyers around. Buying in winter means you can move in and get settled well before the end of the year. Many buyers leave their run too late in the year and hope to be settled before Christmas but forget the 6 week settlement period.
We all know how long it takes to clear out the last of those packing boxes when you move! Doing a move during the middle of the year means you can really enjoy your holiday break and get all those little jobs done during the year rather than facing a massive to do list for the Christmas holidays!
A good reason to buy in winter is that if the property looks good in winter on a cold wet day, it should look fabulous on a bright spring/ summer day! One of the best times to inspect a property is during a rain storm – you can then really see it if leaks and how much natural light comes in.
Winter vendors are generally more motivated to sell – so when you make offers you may find a genuine seller at the other end of the transaction- rather than someone just “testing” the market.
One of the main difficulties with buying in winter is there is traditionally less property stock available on the market. Researching for the right home takes time and inspections can take their toll. You have to dig a bit harder in winter to find the right home.
We’d love to help you search for your new house and possibly help even uncover off-market opportunities. Over the thirteen years we have been in business we have built up an extensive network of sales agents that give us advance notice of listings that are about to come on the market. This gives our buyers a head start on the competition, so that an offer can be presented, agreed and exchanged before the competition heats up.
Why Sell in Winter?
Selling in winter is also a smart strategy for vendors for the simple reason that there are less properties put up in competition. Would you rather sell your home with 20 other similar properties on the market or just 5?
Just as there are motivated sellers in winter, there are also motivated buyers in winter. With the strong Sydney market, many buyers have been left feeling frustrated and even disillusioned with the property market- but still keen to buy. Those buyers with perseverance and tenacity are out looking every weekend even despite the cold.
The main disadvantage of selling in winter is dealing with the soggy lawn and dishevelled garden factor. The garden won’t be bursting with colour, but with some good maintenance and cleverly placed potted plants, the external appeal can be easily fixed.
Tax time is another motivator for vendors to sell in winter and prior to 30 June if they need to minimise capital gains tax or manage tax affairs prudently.
What’s holding you back?
If you’re worried about what price you will get, then sell your home first, then buy. If you can’t find a place to buy, don’t panic, engage our help or rent for a short time. The current market still has plenty of potential. Interest rates are on hold and the gloom from the Federal budget will soon pass.
If you are in the market to buy a home or investment property we would love to assist you. Call my friendly team of buyers agents on 1300 655 615 today to get the upper hand in a hot market, or email your inquiry. We would be delighted to help.
Rich Harvey is founder and Managing Director of www.propertybuyer.com.au, Australia's most awarded Buyers' Advocates. Propertybuyer helps property investors and home buyers search and negotiate the right property at the right price, everytime. Visit www.propertybuyer.com.au or call 1300 655 615.
2. Client Stories
Here is some feedback from a few of our happy clients last month:
"....strong local knowledge and professionalism"
Qian B, Financial Analyst
Buyer type: Investor
Location: St Marys
Buyer's Brief: Wanted a high yielding investment
Being young and working in financial services myself, I am well aware that the “default” way (super, managed fund) hardly deliver the goal of financial freedom or a work-free retirement. My goal is to create a portfolio of passive income properties to out-scale my human resource. Being in the analyst profession I’m highly analytical and risk-adverse. This has limited my ability to act on my analysis. I was also a bit intimidated by the effort and time to scout individual deals. My main worries and fears were that I would buy a “lemon” property due to limited experience and couldn’t achieve the positive yield.
Stewart listed a dozen properties over a six month period. I gradually built knowledge about the targeted area which helped eventually score a deal off market. I’m reasonable happy with the result although I probably entered the market a bit late in the cycle. I couldn’t have scored a better deal without propertybuyer’s help. Everyone engages a buyer’s agent for different reasons, however, you need someone like Stewart with strong local knowledge and professionalism on your team. You’re not buying only property, but also educational experience that benefits your property journey.
"I couldn't have scored a better deal without propertybuyers help"
Buyer's Advocate, Stewart Fraser
Qian was worried that Sydney prices had already gone too high, however we proved through our network of agents that we could still buy well under market value. We even found one with a granny flat which saved Qian time and money in construction
"...Anna managed the situation superbly"
Tracey K, Sales Manager
Buyer type: Homebuyer
Buyer's Brief: Purchase a larger home
I wanted to purchase a bigger property than I currently had, in the Inner West, within a three to six month time period, with the idea of renting out my apartment and moving into the new property. I travel a lot for work and felt that I wouldn’t be able to have as much time as I would like to research and view relevant properties. I wasn’t overly familiar with the area I wanted to live in, so was concerned I would end up wasting precious time focussing on unsuitable streets, suburbs etc.
Having Anna living in the Inner West, having done so for a while, with additional rental properties in the area, she was au fait with living there. She knew many of the streets, a large number of the agents who operate in the area and what to look for when buying a property. The purchase happened quicker than I anticipated. Nevertheless, it all went smoothly. I was out of the country at the time and Anna managed the situation superbly. She kept me in the loop at all times. She was amazing.
If anybody is thinking of engaging propertybuyer, I would say go right ahead. You won’t regret your decision. Their people are very professional, highly knowledgeable, and easy to work with. Nothing is too much trouble. What could be an overwhelming stressful exercise turned out to be seamless and fun with Anna. She’s such an asset to the company.
"..very professional, highly knowledgeable, and easy to work with."
Buyer's Advocate, Anna Rorke Tracey was looking to upsize from a unit and move closer to the city. She travels frequently and always kept me abreast of her availability to look at properties and made it a priority when something suitable was available. We looked at a variety of properties and being very familiar with the area it was easy to impart the pro’s and con’s of the various locations and property potential. Tracey saw the property we purchased a few days prior to leaving for the US on holiday and we successfully negotiated a price prior to the auction and transacted it remotely while Tracey was on holidays which went without a hitch as we communicated throughout the whole process. Having a relationship with the agent helped us secure the property without having the purchaser here to sign the documents.
3. Home Buyer & Property Investor Show - Sydney
We are pleased to announce that propertybuyer will be exhibiting and speaking at the upcoming Home Buyer & Property Investor Show at its new location – Sydney Showground, Sydney Olympic Park on Friday 18th – Sunday 20th July.
Cost of entry into the Expo itself is $20 for adults, however we are delighted to have a limited offer of 150 F*REE TICKETS to this fantastic event, showcasing the latest products and service offerings for all property investors and home buyers.
Be quick, only 150 F*REE TICKETS available!
Please come and visit us at STAND 822 to meet the propertybuyer team!
When: Friday 18th, Saturday 19th & Sunday 20th July
Times: 10am - 4pm
Where: Sydney Showground, Sydney Olympic Park
I will also be presenting a free seminar each day at 12pm on the 'Property Investor Stage' on:
"Property strategies that work in today’s market".
Investors and home buyers often jump in too quickly without formulating a strategy. You need to understand which strategies actually work in a changing property market. Get clarity on which strategy gets you closer to your goals and the relative risks and rewards from each strategy.
Where: Property Investor Stage at the Show
When: Friday 18th, Saturday 19th & Sunday 20th July
We’re looking forward to seeing you there and be sure to say hello to us at STAND 822!
If you are interested in any of the above please contact Jason Low (Manager- Client Relations & Strategy) 1300 655 615 or 02 9975 3311 or email your enquiry to firstname.lastname@example.org
To review the full details of these opportunities you will need to sign a simple confidentiality agreement which protects our interests in the property. If you purchase a property, a fixed sourcing fee will apply.
We look forward to assisting you.