House prices to add another 20% if banks don’t slam the brakes
Chatter about the possible introduction of macro-prudential controls to slow house price growth is increasing, while rep...
Property investors who are waiting to see how the market performs in 2016 are missing out on serious bargains as vendors look to offload their properties before Christmas.
Despite various commentators asserting that the best of 2015’s property market may be behind us – with Sydney’s run of growth ‘done’, Melbourne entering dangerous oversupply territory and Brisbane not performing to expectation, Real Wealth Australia’s Helen Collier-Kogtevs told Smart Property Investment now is the time to “go shopping for real estate”.
“Christmas is generally a really good time to be purchasing property:
a) because you don’t have the competition, and
b) when vendors put their properties on the market, in their mind they’ve sold it, it’s gone, it’s done. And there’s nothing more they would love than to have their property sold by Christmas so that they can have that sigh of relief.”
Ms Collier-Kogtevs said savvy investors could likely save up to $20,000 on purchase prices at this time of year as desperate sellers look to wrap things up before the New Year.
“I think it [the Christmas season] just presents a really good opportunity for investors, because there’s not as much competition,” she said.
With the market quietening down, it could well be the perfect time to buy, she said.
“I love it when the market goes quiet. I think it’s wonderful because it really does present a lot of opportunities around the country for investors. It’s now time to bring out the negotiating guns and make sure you’re not paying full price.
“Getting a discount is really important because it means you’re creating buffers, you’re paying below-market-value and you’re saving your deposit money – which you could then use on another purchase.”
Ms Collier-Kogtevs did warn that if interest rates rise in the coming year, some investors could be in trouble.
“I think as interest rates go up, we’ll see that [an increase in mortgagee sales],” she said. “So while the ship is steady, it will all be fine. However, once interest rates start to go up, I think that’s when we’ll start to see mortgagee options or people in a world of financial stress.
“Investors should prepare – always. They should always prepare for interest rates going up. It’s not just a ‘one-off’ thing. It’s an ‘always’ thing."