By Rich Harvey, CEO & Founder, propertybuyer.com.au
It’s that time of year when people become highly reflective.
We decide to start diets, take up a new hobby, stick to a budget, plan that ultimate overseas getaway or look for a new job. We make resolutions about how to better ourselves and our lives.
What about if there was a resolution you could make that would change your life more than any other? And what if that goal didn’t require you to avoid chocolate or pick up a weight?
Real estate goals set around New Year provide a road map that ‘future you’ will be thankful for.
In other words, the time to make property your priority is now.
Don’t procrastinate
Since prices began to move upwards again in June, many would-be buyers have been sitting on their hands.
They’ve been wondering if this is just a blip on the radar and are waiting to see what happens next. They’re looking out there at the frenzied auctions, scarce listings and intense competition, and deciding to hold off.
Almost all property pundits now agree – this isn’t a blip. This is a sustained recovery in prices and, more likely, the start of a new and prolonged boom period. The forecast for 2020 is for more of the same.
Markets are now well and truly moving in Sydney and Melbourne, and the rumblings of activity are evident in other major cities like Brisbane and Adelaide. It’s time to act.
Make a resolution not to procrastinate – and make it before prices move again after the quiet January period passes.
Make a plan
While I’m urging you to avoid procrastinating, I’m absolutely not suggesting that you rush out immediately and buy anything you can.
While I believe we’re entering a new phase of the property cycle, where prices in Sydney in particular will continue on their upward trajectory, not all houses and not all suburbs will increase in value.
The basic fundamentals of investing remain truer than ever.
So, now that you’ve resolved not to procrastinate any longer, it’s time to come up with a strategy.
What are you looking for? Is it a home to live in or an investment property for your portfolio? Where do you hope to buy? What can your budget allow – a unit or a house?
What’s your goal? Is it to pay off your own home? Is it to build a portfolio and, if so, are you focusing on cash flow, long-term capital growth, or – ideally – a combination of both? Is this the first investment? Is it hopefully one of many?
Start to make a list of your wants and needs. Consider your priorities and what you want to achieve.
Then begin to explore properties that fit the bill. Prioritise potential deals that offer good growth prospects. That is, dwellings that suit the current and emerging demographic, areas well-serviced by transport and with good levels of lifestyle amenity.
Get realistic
As prices rise and supply levels remain constrained, it’s important that would-be buyers set reasonable expectations.
Start to build an intimate knowledge of markets you’re looking in. Get familiar with what’s on offer, what’s selling and what’s not, how long listings take to move and the level of interest from prospective buyers.
If what you want and what you can afford are too far apart, it might be worth reconsidering your expectations.
There are some things you can compromise on that still allow you to achieve your property goals without sacrificing livability or investment potential.
Get your ducks in a row
Time is of the essence at the moment and it will be more so in 2020. Once you’ve found a place you’re interested in buying, you want to be able to act quickly.
If you’ve been to an auction or open for inspection of late, or heard about the experience from a friend, you’ll know they’re pretty frenzied. It’s good to get yourself sorted now for when you’re ready to strike.
Seek the services of a qualified and experienced finance broker to get mortgage pre-approval. Not only will this save you time when you’ve saved the contract, but it’ll give you a clear sense of what you’re able to spend.
Do some research and get your other experts on side too such as a solicitor and building and pest inspector, ready to enlist when pen has hit the contract paper.
Above all else, use a professional
If you’re looking out at 2020 and feeling daunted by the prospects, help is at hand. As an experienced buyers’ agency, we can provide a guiding hand and independent advice to help you secure a property that will fit your requirements for the next decade… and beyond.
To have a friendly Buyers' Agents to contact you:
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call us on 1300 655 615 today.
