Spring signifies the start of warmer weather, which is also when the property market is at its busiest.
However recent reports suggest that the property market is cooling in some parts of the country, which may seem foreign to those that are used to the double digit growth we’ve seen in the last few years.
While this may dampen investor activity, a cooling market still has a number of benefits, so the next six months could be just as busy. Here are some of the things you might notice during the warmer months and some helpful tips to get you ready.
There will be a resurgence of first home buyers
According to Australian Bureau of Statistics (ABS) data the number of first home buyers (FHB) buying their first home is on the rise.
The number of first home buyers as a percentage of total owner-occupied housing rose to 16.6% in July this year, up from 14.9% in June. Previous months also show an upward trend.
If you’re a FHB, a cooling market will be welcome news. However, remember that it’s still competitive and there will be other first home buyers in a similar position, so make sure you’ve got your finance sorted so you’re ready to go.
You can take your time to find the right property
When the market is heated, there’s always the added pressure of having to jump on a house the second it is listed for sale.
In a cooling market, you have a little more time to find the property that best suits your needs, in some cases, you may even be able to negotiate harder on price.
Make sure you get your finance sorted early
It pays to arrange your finances early, as you never know how the market is going to change while you look for the right property.
For example, a number of lenders are currently reducing their appetite for interest-only lending for both investment and owner-occupier customers, which could catch out a number of buyers.
Therefore, obtain a conditional pre-approval to confirm how much you can safely afford, which allows you to confidently look for the right property at the right price.
To talk to a Liberty adviser about what your options are, click here.
Broaden your search if you can’t find the right property
Sometimes property buyers can get fixated on just one or two very specific locations, which results in the buyer waiting months and months for the perfect property to come up.
Broadening your search can really pay off. You may find a larger property for the same price a little further out in a surrounding suburb or, conversely, a smaller property in a much better location. The key is to not limit yourself to only one location.
Do your homework
Some quick Google searching on suburbs will provide recent sales histories and median house prices in your desired locations. Your local Liberty adviser can also provide free property reports for you as well.
Familiarise yourself with the market and know what the market is doing so you have a good understanding of property values. Don’t be afraid to introduce yourself to local agents in the area, you may get first crack at a property as a quick sale is a win for all parties.