A buyer’s agent has revealed access to finance is hindering investors in the inner ring of Sydney this month and is expected to continue through to the end of the year.
Investing in Sydney’s popular markets has been a difficult task over November, according to Kellie Landrey, buyer’s agent at Scoutable.
It has not been due to the properties; she said those with no issues have been selling well. Instead, the current finance environment is making it difficult to purchase properties in the first place.
What would normally take a week to secure is now taking upwards of a month, and Ms Landrey said when those do secure financing, it has been for less than they were expecting and cannot compete for a property.
“There was another property I was looking at buying for a client in. About six months ago, [it] would’ve sold strongly for $2.6 [million] and they’ve pushed back the auction with only two buyers on property and both struggling to get finance is a reason why it’s not selling,” Ms Landrey recounted to Smart Property Investment.
“What I’m finding is that there’s a limited availability of funding which is causing less buyers on the property then there were six months ago.
“Not that there aren’t buyers, it’s just they don’t have the funds to really push to the level that vendors are wanting right now and it’s causing some properties to pass in but other properties are still going well if [they are] priced accurately.”
Specifically in Sydney’s inner ring, properties up to $1.5 million are selling well, but those between $1.5 million to 3 million are suffering as a result of the financial environment.
Ms Landrey does not see the situation improving in the near-future over Christmas.
Vendors will also be seeing a harder time, but in doing so will give smart property investors the upper hand.
“There are vendors who are probably going to drop pricing to try and get property sold before Christmas,” Ms Landrey said.
“Some vendors will drop prices to have it all done by Christmas to start the new year fresh.”
Regardless, Ms Landrey said there are still good opportunities available for finance-savvy property investors.
“You’re ahead of the game if you’ve got your pre-approval and you’re ready to act,” she said.