We all know you’re meant to buy low and sell high, but how do you know when you’re looking at a true deal? Get it right when you buy a house in Sydney or surrounds, and you’ll be looking at solid growth and healthy returns on your investment. It’s worth considering these factors when it comes to finding your new home at the right price.
Get to know the market patterns
It’s key to buy when the market hits bottom, but knowing when this is occurring isn’t always easy. The property market tends to follow patterns on a state by state basis, so it’s never too early to start watching the behaviour of local prices. You can easily access historical sales online and begin to familiarise yourself with the typical cycles.
It may seem counterintuitive to buy when people are feeling negative about the market, but successful investors often go against the flow. Look out for falling prices and low sales volumes – that’s when owners are starting to offload their properties in case the market drops further. Once sales volumes start to rise again, you’ll see more competition for the same properties which will in turn drive up house and land prices.
Consider the local area
It’s also important to consider the greater outlook of the area you’re looking to invest in. A certain location may be offering excellent prices but for a very specific reason. If a town or suburb depends largely on one industry, for example mining, then prices could be largely dependent on what happens within that industry. On the other hand, new commercial or office developments in the area can be an indication that investors have confidence in the future of the location. As such, it’s wise to pay attention to what’s happening in the news and how it might apply locally.
Negotiating your price
If you feel that you’re ready to buy and have spotted an ideal property, negotiating the right price is the next step. If the property has seen price reductions or is sitting empty this may be a sign that the owner is highly motivated to sell. Negotiating while sales are slow will give you the best opportunity for a good price.
Finally, if you are planning to offload your current property and it is located in the same area you’ll want to factor this into your calculations. After all, no one can expect to gain top dollar and pay bottom dollar within the same market (although our team will certainly help to achieve this).
All in all, buying property in a down market tends to be a highly rewarding experience for those who can spot a genuine opportunity. To begin exploring those opportunities in the Hawkesbury, Nepean, Central Coast and Hills areas, search our listings today.