Right now, the Australian property market is sizzling hot. This is exemplified by the median house prices rise. Prices of properties in all the Australian capital cities went up by at least 5%. In Melbourne alone, the prices of house has risen 34%. The prevailing market condition favors the seller more than the buyer, and this is because there is a greater demand for the properties than the supply. In case you are looking to buy a well-positioned investment property, you need to learn how you can recognize the value, then get smart with your purchasing strategy. Use the following Tips and Advice for Investment Properties.
Finding a value and recognizing a good buy
first thing you need to do when buying any property is to spot a good
deal. Do thorough research and compare sales of similar properties which
have been sold in your chosen area for the last three months. You can
also talk to your agent or valuer since they have access to more
detailed sales data. A valuer is experienced in valuing a property
according to several factors like existing condition, location,
accommodation, land size/content and style.
are reports from RP Data, Australian Property Monitor or Residex which
you can buy. Here, you will get latest sales information which helps you
in determining if the particular property that you eye is of good
After finding the property
After locating what you
want, you now need to negotiate. Even if the current property market
seems so hot, it is still possible to get some bargains. If you want to
get the best deal, you need to track down vendors who are motivated to
dispose their properties. Some of them may be desperate to dispose off
their properties following other constraints like debt, disaster or even
divorce settlement. The following tips will help you negotiate and get a
good deal on the property you have earmarked.
1. Make the first offer
you make the first offer, you get into a nice position for negotiation.
This also means that you will be the only person allowed second offer
2. Have something to trade off
means that you should promise an agent another property that is being
sold. This can work magic on your part because the agent knows he can
make double earnings on commission. This automatically puts you in a
strong position in the negotiation. Try to look for a family’s,
colleague or even a friend’s house that is on sale and use it as a
3. Find a syndicate of purchasers to leverage purchasing power
If it happens that you are buying an apartment or a home in your city,
you may be faced with stiff competition from investors and home buyers,
and this will tend to create an upward price pressure. The solution is
to join a group of investors who may want to buy blocks of flats. There
won’t be more people who can match this purchase capacity.
4. Present multiple low offers
would be suicidal to buy a property based on emotional decision.
Rather, you should focus on quality, investment grade and blue chip
properties whose owners are desperate to sell. By making multiple
offers, you will have better chance at landing a vendor who needs to
I trust you have found this article informative about investment property Australia. Visit us again for more information visit http://www.investmentproperty1.com.au