Good Deeds Property Buyers Tips

The buying & selling in the same market myth.

2010-08-20T15:53:00.000-07:00

You often hear it said that you can’t go wrong buying and selling in the same market. But is this true? If you think about it, it can only be true if you are buying and selling in the same price bracket and the same suburb.

Of course you can’t always be in control of the timing when it comes to your need for a home. But in reality, there are a couple of “ideal” principles when buying and selling.

1. Upgrade in a falling market. As prices fall, the gap between the price of your old smaller home and your new larger home will narrow. In a rising market, the gap widens – and you have to fund this gap.

2. Downgrade in a rising market. Likewise, the gap between the price of your redundant family home and your new empty nest will narrow in a falling market – so to maximize your retirement funds you want to buy and sell when your large home is worth its maximum.

It is rare to actually manage a simultaneous transaction – there is usually some lag between the sale and purchase. Be careful that you don’t get caught out in a volatile market. For instance if you buy when the market is rising and the market falls overnight (such as what happened with the GFC in September 2008), then you get caught when you go to sell. Of course, this can work in your favour if the opposite occurs. Riding the property wave is truly a fine art… with more than a bit of luck mixed in.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Units versus townhouses – which is best to buy?

2010-08-20T15:51:00.001-07:00

In some areas you can find townhouses and units selling for similar prices. Assuming all things are equal (size and dollar wise), I would nearly always err towards the townhouse.

There are less of them around and the complexes are often smaller, so capital growth will probably be better. In addition, a townhouse usually has more outdoor space than a unit. Often the strata levies are considerably lower as smaller complexes generally have less common areas and no expensive facilities like pools and gyms.

Of course, if it is a view you are after, you have a better chance of finding one in a multi-story apartment complex than a townhouse.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

What opportunities does a slowing market offer buyers?

2010-07-28T23:17:00.000-07:00

We are starting to see increased media accounts of slowing housing price growth, falling auction clearance rates and lower borrowing figures. Call me a cynic, but I often see these stories before we see any evidence at “ground level” of a slowing market. However, they often end up being self-fulfilling prophesies. As buyers start to read more negative property stories, they begin to believe them. Add this to a healthy dose of wishful thinking (haven’t we all been wanting prices to drop?) and we begin to see caution creeping into the market.

What happens when buyers are cautious? Usually the first thing we see is a fall in auction clearance rates. People suddenly no longer want to compete for property. We hear the phrase “we’ll just wait and see what happens.” Instead of deciding what they are prepared to pay (then bidding over their limit), the punters wait to see what price the vendor wants and then decide whether that represents value or not. So, if you are the only buyer prepared to bid at an auction, the power is actually in your hands to negotiate a good deal.

If a property is passed in at auction then advertised at a reasonable price, you can still see competition as buyers will react to a well-priced property. However, if it is perceived as being over-priced, buyers will not make offers. Then the property gets a stigma (there must be something wrong with it). Often these turn out to be great buys after spending a long time languishing on the market.

For more information on buying property in Sydney go to gooddeeds.com.au.

Why would an agent quote one price to me and something else to another buyer for the same property?

2010-07-28T22:59:00.000-07:00

The language of real estate is ambiguous. This is due mainly to the fact that every buyer interprets information differently. Agents need to make a judgment call on how you are likely to interpret what they say before they say it.

Confused??

How much do you add on to an agent’s price guide? 10%? $50K? $100K? It is a personal thing and varies greatly from buyer to buyer. Usually the amount you add on is a direct result of your experiences in the property market. The agent doesn’t know how much you are going to add on, so he/she is going to quote the lowest figure they can get away with in order to increase the chance that you will think it is within your budget.

Now for the other buyer. The agent may know them better than you. This buyer may have missed out on another property sold by this agent. Maybe the agent has appraised their home and is familiar with their buying requirements. If there is more trust in their relationship the agent can afford to be more honest, hence a different price guide.

So, what is the solution? If you are not dealing with an agent where you have built up a trust relationship, you need to know your market. Do your own research and make up your own mind on the price.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Choose property that out-performs the median growth rate.

2010-07-01T19:43:00.000-07:00

Many of our investor clients come to us looking to buy in the next “hot spot”. Many others are looking for proven locations with above average median price growth.

However, even in these “safe” suburbs, buyers can go wrong. In every suburb there are properties that perform above and below the median. The trick when buying property, particularly when the purpose is for investment, is to identify the traits that mean a property will at least match the median growth rate for that area.

Local knowledge is essential. For example, corner blocks may be favoured in one suburb and shunned in another. Or buyers in one suburb can be seduced by the charm of weatherboard cottages, yet in another location they are seen as sub-standard homes.

When buying in a sellers’ market, you will find that almost every property generates some level of competition amongst buyers. When the market cools, the only properties that generate buyer competition will be those that are capable of performing at or over their suburbs median growth rate.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Are we there yet?? How to tell if the Sydney property market is finally slowing down.

2010-06-10T01:26:00.001-07:00

On Saturday 22nd May there was a double page spread in Domain section of the Sydney Morning Herald devoted to the property market slow down. Interesting, as at the coal face, we are yet to see any significant change in buyer demand in our neck of the woods so it felt a bit strange to read about demand dropping when competition for property is still fierce.

But there are signs that the market may be at its peak, or else it will do so soon. Not the least of these are such media reports that the tide has turned. These sorts of news stories (and there have now been a number of them in the past couple of weeks) will have a direct impact on consumer confidence, which is one of the foundations of a sellers’ market.

And talking about consumer confidence, economists have recently reported a 7% drop, the first in ages.

Certainly auction clearance rates – while still respectably high – have dropped since the highs of March. But to put this in context, we need to remember that we have had record auction listings this month.

Selling agents are starting to tell us that they are getting less people through open houses and that there is a small but perceptible drop in buyer activity (i.e.: offers).

Property analysts are recording reduced price growth in the lower end of the market and the expectation is that this will have a follow-on effect (a reversal of the first home buyer led property boom).

Probably the most telling sign is when buyers start doing silly things. Such as making offers way below agent’s price guides and expecting to get a result. Hat’s off to these buyers for giving it a go, but I think they are a premature with their antics.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

What does it mean if an agent is quoting $1.3M for an auction property?

2010-06-10T01:11:00.000-07:00

If I offer $1.3M will they sell it to me prior to auction?

We have heard this question in numerous forms over the years – so many people get confused by Sydney’s auction price quoting system.

The fact they are quoting around $1.3M really means that they really want more than $1.3M. If the property goes to auction and the best offer they get is $1.3M, they might then sell for that price – but they might not. But for a buyer to buy it prior to auction, they need to make an offer that will entice the vendor to sell before the auction – as all vendors hope to get competition that will give them a price over their reserve. (I am not even going to venture into the area that deals with what price the agent put on their vendor’s agency agreement).

Without having done any pricing research on this property, I would think they’d be thinking at least $1.35M to sell prior to auction. But if there are other interested buyers, this figure can climb. For example, recently we had a client interested in a property that was being quoted as $940K+. I spoke with the agent about an offer and was advised that other buyers had indicated around $1.06M (a big jump, I know, and there were comparable sales to justify this). My clients were very keen on this house and decided to offer just over $1.1M. This would have bought it, had there not been at least three other buyers prepared to pay similar money. In the end, we secured it for $1.125M – and believe it or not, there were two other buyers then prepared to pay more!!

I hope this makes sense? It doesn’t make sense to me half the time…

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Why use a buyer’s agent?

2010-05-28T18:47:00.001-07:00

Of course you can buy property without assistance, but the vendor is represented so why shouldn’t you be?

We can demystify “agent speak” and give you clear guidance.
It’s hard to know what to believe and what not to. Believe it or not, selling agents don’t know when to believe buyers either. We can cut through all this confusion and be your credible source of information.

Give yourself a competitive edge in a sellers’ market.
We know what tactics to use and how to time offers to minimize the risk of competing with other buyers.

We can recognize potential in a property that you can’t.
Buyers these days are used to seeing well presented property and often can’t see a diamond in the rough. Our experience allows us to quickly see opportunities that aren’t obvious – this is where people make money in property.

We can recognize a lemon when you can’t.
We have been involved in buying and selling property though good markets and bad. At the moment, everything is selling, however the market will return to normal and we can help you avoid purchasing a property that would be difficult to sell in a buyers’ market.

Finally, we give you the confidence that your final decision is the right one and that you are paying the right price.

For more information on buying property in Sydney go to www.gooddeeds.com.au

Real estate buying stages.

2010-05-14T00:56:00.000-07:00

Trying to buy a property in a sellers’ market is no walk in the park. We meet buyers at all stages of the purchase cycle – do you recognize yourself in this list?

1. Optimism – this is fun, you are excited, and nice to selling agents
2. Disappointment – first auction goes 20% over what you thought it would sell for
3. Disbelief – at what people continue to pay
4. Anger – at selling agents for under-quoting, at other buyers for over-paying
5. Resentment – you pack up your toys and stop playing for a while
6. Resignation – that the market is continuing to rise despite your lack of participation, you still want to buy after all
7. Desperation – you try to talk yourself into anything just to get into the property ladder and get your Saturdays (and sanity) back
8. Wisdom – learn from your mistakes and/or get expert help!

For more information on buying real estate in Sydney go to www.gooddeeds.com.au.

Is the Sydney property market about to turn?

2010-05-07T15:23:00.000-07:00

Frustrated buyers are waiting for the market to slow down and after this week’s interest rate rise (the 6th since September 2009) we are asking the question – what will be the tipping point?

We are seeing a few indications that the property market may be starting to cool.

• Firstly, an article in last Saturday’s Sydney Morning Herald said that there are a record number of auction listings this month. More listings means that buyers have more choice and more choice usually means less competition, which in turn means lower prices.

• I went to another Westpac briefing yesterday and they are seeing the first stages of a drop in consumer sentiment. If buyers are not confident in their own financial security they will begin to act with more caution.

• Anecdotal evidence from agents selling property in outer areas of Sydney is that things have cooled in the lower price bracket. Since the first home buyer segment lead the current real estate charge it only stands to reason that it should also lead a slow-down.

Having said all this, we are heading into a winter market, where low stock levels traditionally result in heightened buyer demand and continued price growth. So the tipping point may be delayed until spring is upon us.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Common mistakes by real estate buyers.

2010-04-15T20:41:00.000-07:00

Many of our clients come to us after a string of disastrous attempts to navigate the property market themselves. Here are some examples of common mistakes that we come across.

• Giving the selling agent too much information. Putting you at a disadvantage when negotiating.
• Not giving the selling agent enough information. How many people have missed out on a property because the agent did not know they were interested? The art is in knowing what to say and when.
• Panic in a rising market and buy foolishly. As Louis Christopher said last week, “Remember lemons are very hard to sell in bad markets." But we see plenty of them selling at the moment.
• Panic in a rising market and don’t buy at all. Of course the market will level off at some stage, but how much will prices rise before that happens?
• Keep increasing their offer without a counter-offer from the vendor. This is not the way to negotiate with an unrealistic vendor.
• Leave too much time between getting an offer accepted and being ready to exchange contracts. And leaving the door open for another buyer to snap it up.
• Allow the auctioneer to create a rhythm. Before you know it you have bid over your limit.
• Let the fact that other people are bidding confirm what the property is “worth”. Instead of doing your own research.
• Believe what the agent is quoting for a property. Buyers largely determine what property sells for in this market and there aren’t many that tell the agent what they are prepared to spend.

There are many pitfalls for the unwary and the weary. And it is so easy to get caught up in the general frenzy and lose sight of what represents value for you.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Why we recommend property investors engage a managing agent.

2010-04-09T23:50:00.001-07:00

I could manage my own investment properties but choose not to. The reason is that tenants have a whole bunch of rights and landlords have a whole bunch of obligations that most are probably not even aware of. So, a good property manager can help keep you out of tribunal (or represent you if necessary) and ensure that your interests are protected at the same time. It’s not just money for jam…

Also, even though I have often lined up my own tenants, I always pass the management onto an agent so that I can keep at arms length. I am busy working in my own area of expertise and don’t want to be bogged down with tenant issues (sometimes there can be plenty).

And talk to your accountant, as management fees should be tax deductable. You can also get all the bills directed to the agent and get one annual statement which you just pass onto your accountant. Simple!

For more information on buying an investment property in Sydney go to www.gooddeeds.com.au.

Who uses a buyer’s agent?

2010-03-26T22:13:00.000-07:00

Many people think that it is only the rich who engage the services of a buyers’ agent.

Our client statistics show that the reality is vastly different to what you may think.
• 74% have a budget under $1 million.
• 71% are owner occupiers.
• 81% live in Sydney.

The reasons people may choose to use a buyers’ agent include:
• Being time poor
• Recognizing a knowledge deficit
• Appreciation of the benefits of “buying” experience
• Comfortable with outsourcing specialist expertise
• Desire to avoid making a costly mistake
• Need reassurance and confidence to commit to such a monumental investment

Let me ask you this question – if you were to buy $20,000 in shares, would you do so without specialist advice? Your exposure to risk with property is much greater and the asset is not very liquid, to say nothing of the costs of getting in and out of the market. In short, everybody can benefit from using a buyers’ agent.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Why out-of-towners need expert real estate help.

2010-03-18T02:54:00.000-07:00

Here is a little story about buyers from Brisbane and buyers from Melbourne trying to secure property in Sydney’s heady real estate market.

Just before Christmas last year we had a client come to us after finding a property they liked in Rozelle. These buyers had recently moved to Sydney from Brisbane and, although renting in the area, had yet to come up to speed with the local dynamics of this market.

This particular property had ample internal accommodation, double parking and city views, so it was easy to see why it appealed to our clients. HOWEVER, it was on a busy corner, lacked privacy, had limited usable outdoor space and was neither contemporary nor period in style. In short, this was a property that would be difficult to sell in a “normal” property market, particularly as it was of a style that generally does not appeal to Balmain/Rozelle locals.

After evaluating the property, we advised our client that $1.7M was “top dollar”. It had, in fact, just passed in at auction with a vendor bid at that very figure (and two other offers had apparently been made under that figure), however the vendors were hoping to achieve $1.8M. The agent reported to me that the vendors would accept $1.785M and I expect there would have been further room for negotiation if our clients were prepared to pay over $1.7M, however my clients decided to let the property go.

Christmas came and went, then suddenly we hear that the property had sold for $1.8M! A little investigation revealed that the purchasers had a very similar profile to my clients: they were of a similar age, recently moved from Melbourne and also renting in the area. The difference? Our clients had expert advice and avoided paying too much for a property that does not appeal to local buyers. If the Melbourne people had engaged us, they would have saved a minimum $15K – and probably more.

Postscript – our Brisbane people have since purchased a lovely double-fronted weatherboard in Rozelle at a much fairer price! Precisely the sort of property that will be easy for them to sell to a Balmain/Rozelle local when it comes their turn to put it on the market.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

When are prices going to drop?

2010-03-11T21:12:00.001-08:00

It seems now that most economists agree that the sellers’ market is here to stay for a while – but why and for how long? This week I went to a property briefing presented by Westpac and gained a greater understanding of the economics of real estate.

One key underlying factor in residential property in Australia is consumer confidence. In a consumer sentiment survey conducted by Westpac in January, 80% of respondents said that they thought house prices would rise this year. Bottom line, if you think house prices are going to rise you won’t feel nervous about buying now, but you will feel nervous about prices going up while you take your time hunting for the perfect home.

Why are consumers so confident? Our trusty Westpac economist pointed out the following market drivers:
• Population growth (migrants and babies are on the increase),
• Under-supply of dwellings (housing approvals have been lower than needed to support this population growth since 2004),
• Affordability (according to economic measures, affordability is not an issue in Australia – despite how you feel every month when you make your mortgage payment!),
• Our current stimulatory environment and the Reserve Bank’s reaction to local and international economic forces (the plan is apparently to remove the stimuli - such as emergency interest rate levels – gradually so as not to impact on consumer confidence).

In short, it looks like we are going to see continued property price growth throughout 2010 – at least until we consumers start lacking in confidence…

For more information on the Sydney propertyt market, go to www.gooddeeds.com.au.

How to decide how much to pay for a property.

2010-03-04T17:41:00.000-08:00

As real estate agents, we have a requirement under the Property Stock & Station Agents Act to undertake a thorough analysis when determining what purchase price we recommend a client pays.

There are a lengthy list of factors we take into consideration in order to comply with the Act. Some of which are:
• A detailed analysis of recent sales
• Assessment of the factors that may affect the price people are willing to pay for this property in the current market.
• Is it a property that will attract buyer interest if you need to sell it in a flat market?
• Is there an obvious way that you can add value?

However, there are also factors that are individual to every buyer. For instance:
• How long have you been looking for? Is this the only property that you have found in 12 months that suits your requirements?
• What is your timeframe – own it for 5 years then upgrade, or is this your 20 year home?
• Are you an investor or an owner occupier?

Sometimes you need to pay a premium for a property that is going to suit your needs better than anything else that is likely to come onto the market in the near future.

Sometimes, however, it is folly to pay a premium for a property that is highly likely to drop in value when the market levels off. Knowledge is power and the more you know about the suburb you are buying in, the better decision you will make.

For more information on buying property in Sydney go to www.gooddeeds.com.au

To buy or not to buy, that is the question.

2010-02-25T17:49:00.000-08:00

So, the market is positively boiling and you don’t want to overpay for a property that is going to drop in value once official interest rates hit 7.5% or 8%? So, you decide to sit on your hands and wait until the market drops.

Right strategy? Or costly mistake?

The answer is, like everything in property, not straightforward.

Firstly, the decision to wait really hangs on the timing of the next market slow down. We all know it will happen, but when? Many economists are suggesting that we will experience strong growth for the rest of 2010. If this is the case, then there is no point waiting for prices to gain another 10%+ before easing off a little – get in the market now and enjoy some capital growth!

Or, if the Reserve Bank does decide to rapidly increase interest rates sooner rather than later (though some macro environmental forces seem to be keeping the brakes on its plan to return rates to “normal” levels) , those who buy now may find that they have bought at the peak.

An essential component to this decision making process has to be your time frame. If you are looking to buy a property and renovate for a quick turn-around, then riding the property cycle is extremely risky – but get it right and it could be very profitable. If you are buying an investment for the long term, then as long as you are careful that you buy a quality property and do not get caught up in the current buying frenzy, you should be able to ride out future peaks and troughs in both the sales and the rental markets (assuming of course that you have not borrowed up to the hilt).

Lastly, if you are buying your “20 year home” you might find that suitable properties are few and far between. Your decision whether or not to buy really depends on when you find the right property. If that is now, then pull out all stops and go for it – depending on what you are looking for and where, another may not come up for another 6 or 12 months!

For more information on buying property in Sydney go to www.gooddeeds.com.au.

When not to compete for a property.

2010-02-18T14:33:00.000-08:00

Last weekend I saw an auction for a property on a busy road. I was astounded not only at the amount of bidders for this property, but at the crowd of onlookers that the auction attracted. This level of interest from actual buyers and sticky-beaks alike is completely symptomatic of the current strong property market. In a “normal” market or, god forbid, a down market, this auction would be lucky to attract more than one bidder let alone many spectators. During market down times in years gone by we have seen numerous auctions where the selling agent, the vendor, the auctioneer and if they were lucky, one buyer were in attendance.

So, why are people suddenly competing for property on busy roads? Some reasons include a lack of quality stock, fear of being priced out of the market and a general sense of panic amongst buyers. We are also seeing inflated prices being paid for unrenovated properties for the same reasons.

This property sold for $100K over what the agents were quoting. If you are going to compete for a property, make sure that it is a property that will also be desirable to buyers when the market returns to “normal”. Let’s face it, if you are going to pay a premium, you may as well ensure you pay it for a good property, not a bad one.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Why you can’t rely on property statistics

2010-02-04T17:25:00.000-08:00

Anybody who speaks to me about property trends will know that I am very skeptical about the value of statistics when it comes to the Sydney property market.

The main reason for this is that Sydney is NOT a homogenous market and even within suburbs there is a great deal of variability between properties. At best they can provide a starting point for research, however they are prone to mislead the unwary.

Some examples:
• A few years ago Birchgrove registered a 20% drop in values purely because there were no waterfront sales that year. Non waterfronts definitely increased in value and if these properties were analyzed separately I am sure the actual results would have been closer to showing something like a 12% growth.
• Annandale has recently registered a larger than actual increase in median house price due to an unusually high one-off sale over $5M. We recently had a client who had stopped looking in this suburb because they felt they had been priced out of the suburb due to this rapid “growth” in prices. When we showed them actual sales results they could see that Annandale was actually tracking the same as surrounding suburbs.
• Drummoyne units range in value from around $450K for unrenovated red brick 3 storey walk-ups to over $2M for waterfront eastside apartments with Harbour Bridge views - the rental yields at the lower end are vastly superior to those at the higher end, yet they are all bundled into the same statistics for units. Investors may miss out on great opportunities if they rely on yield statistics for this suburb.
• The Alexandria median unit price showed a large jump about a year ago – driven by the completion of large new apartment complexes, not by actual price increases.
• The median house price for Sydney showed an increase last year which was fuelled by first home buyers. Yet, when you break the figures down, the lower end of the market showed a much greater increase than the upper end of the market. So the impact of the first home buyer influx was far greater at their end of the market than the statistics revealed.

The moral of this story? Research into the property market requires much more than devouring statistics and buying suburb reports. You need to understand the individual dynamics of each suburb and area if you are to be confident in making a wise purchase.

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Buying off the plan or brand new

2010-01-28T17:46:00.001-08:00

When buying a brand new apartment or townhouse the thought of being the first to live in a property can be pretty tempting. But what are the pitfalls?

History is the often the best predictor of future performance when it comes to property values. So it will be hard to gauge which properties and developments are likely to offer the best growth.

Here’s what else you can’t tell with a brand new building:
• Quality of the build (the faults will not have yet revealed themselves)
• Quality of finishes and the way they will wear
• Natural light (unless it is complete)
• Future warranty claims and possible legal battles
• How the building will be accepted/regarded by buyers in the long run
• How tightly held the building will be
• What percentage of apartments the developer will hold onto and whether they will flood the market in 5 years time

You may find you get better value in a nearby building which is only a few years old…

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Image courtesy of freefoto.com

Property Buyer Prep List

2010-01-21T13:04:00.000-08:00

In a competitive market (which it is shaping up to be this year) you need to be ready to act quickly once you see a property that you would like to buy. Get yourself ready to buy in 2010 with this handy checklist.

Deposit

Make sure you have access to enough cash for a minimum 10% deposit and to cover other costs such as stamp duty and legal fees. You may also need to cover mortgage insurance.

Get a cheque book or put the funds into an account which will allow you to transfer large sums of money overnight.

Deposit bonds are an option, however they can be very limiting.

Finance

Get your finance pre-approved and get your lender to put this in writing. An approval in principal is not enough.

Also find out whether you will need a bank valuation before you can exchange contracts.

Legal Advice

Choose a solicitor who specializes in property or a conveyancer before you find a property you like.

Real estate agents can give recommendations or use these links:

The Law Society of NSW http://www.lawsociety.com.au/community/findingalawyer/findalawyersearch/index.htm

Australian Institute of Conveyancers NSW Division
http://aicnsw.com.au/aicnsw_cms

Building & Pest Inspection

If you are purchasing a torrens title property (and even strata in some instances) you will need to get a building and pest inspection.

Ask around (friends and real estate agents) for referrals and keep some numbers handy – you will need to engage them at short notice once you find a property.

If you would like more information on buying property in Sydney go to www.gooddeeds.com.au.

Image courtesy of www.freefoto.com.

Why use a buyer’s agent?

2010-01-14T14:01:00.000-08:00

This is a question many people ask, and here are just a few reasons:

Have someone on your side representing your interests.
After all, the vendors have the selling agents looking after them! Using a buyer’s agent is a great way to level the playing field. You wouldn’t represent yourself at court, would you?

We can save you money.
The ways that we can save you money are many and varied. Obviously, we are experienced negotiators and bidders, but we are also able to develop strategies for every property we purchase that minimize competition and therefore lessen the price our clients will need to pay.

Our local knowledge helps you avoid hidden pitfalls.
Many streets or areas are shunned by locals yet appear to be utterly normal to the uninitiated. Because we specialize in Sydney’s Inner West and Inner East, we have developed the knowledge that allows our clients to avoid making costly mistakes when purchasing a property.

For more information on how a buyers agent might help you go to www.gooddeeds.com.au.

A rising market is not the time to upgrade!!

2009-12-10T00:26:00.000-08:00

Look at this scenario…

This time last year, you believed your house was worth $700,000. Now, prices in your suburb are reported to have increased by 10%, which makes your home now worth $770,000. You have just had a promotion and are keen to climb the property ladder. The trouble is that your next house, having been worth $1,000,000 a year ago, is now also worth 10% more - $1,100,000*. So, if you upgrade now, you’ll be $30,000 worse off than you would have been last year, plus the extra stamp duty. You will be better off when the market finally slows down…

* assuming you are looking in the same area or one with comparable sales growth.

If you would like more information on buying property in Sydney go to www.gooddeeds.com.au

Image courtesy of Luigi Diamanti http://www.freedigitalphotos.net/images/view_photog.php?photogid=879

A rising market – time to downsize!!

2009-12-03T12:32:00.000-08:00

Look at this scenario…

This time last year, you believed your house was worth $2,000,000. Now, prices in your suburb are reported to have gained 10%, which makes your home now worth $2,200,000. You have just decided to retire and take on some consultancy work. The good news is that your next house, which would have fetched $1,000,000 a year ago, is only worth $100K* more than it was back then – now $1,100,000. So, if you downsize now, you’ll be $100,000 better off than you would have been last year and certainly better off than if you wait for interest rate rises to take effect and price growth to slow again. Time to jump!!

* all things being equal, which may not be the case if you are looking in a completely different area.

For more information on buying property in Sydney go to www.gooddeeds.com.au

Image courtesy of Michal Marcol http://www.freedigitalphotos.net/images/view_photog.php?photogid=371

Can you still buy something close to Sydney's CBD for under $500,000?

2009-11-26T13:06:00.000-08:00

Last month RPData released a report listing median house and unit prices in Sydney. Surprisingly, there are two suburbs within a 10km radius of the CBD where you can still buy a house for less than $500K – Sydenham & Tempe. You just have to put up with a bit of aircraft noise…

You have a lot more options if you are wanting to buy an apartment. Due to an abundance of 1 bedders and studios, the City of Sydney Council area has the highest number of suburbs (20 in total) where unit prices are under the $500K mark. A further four suburbs can be found within the North Sydney local government area (LGA) and two each in Leichhardt and Woollahra LGAs.

The opportunities are diminishing, however as property values continue to rise, so how much longer we will have the chance to buy anything under $500,000 close to the CBD is anyone’s guess… Only yesterday, an article in the Sydney Morning Herald predicted further rises – and the median house price for Sydney is now $607,000, with the median unit price still under the half million mark at $457,000.

Click on this link to read that article: http://www.smh.com.au/business/house-prices-to-rise-further-but-theyre-worth-it-says-rba-20091125-jrta.html?autostart=1

For more information on buying property in Sydney: http://www.gooddeeds.com.au/

Gazumping is legal.

2009-11-19T17:41:00.001-08:00

In a competitive market many buyers find themselves either trying to gazump or being gazumped. And with many people, the moral code is that gazumping is fine if you are the one doing the gazumping but unethical if you are the losing party!

If a property you are keen on has already had an offer accepted but contracts have not yet exchanged, then you are free to submit an offer. But it has to be a serious offer designed to entice the vendors to reneg on their previous agreement – don’t just add a couple of thousand dollars to the price.

One of three things are then likely to happen:
1. The vendor decides to honour the original agreement (even at a lower price)
2. The vendor gives the other buyer first right of refusal at the higher price you have offered
3. They accept your offer

If they accept your offer you’d better exchange contracts quickly to avoid being gazumped…

For more information on buying property in Sydney go to www.gooddeeds.com.au

Apartment values growing faster than houses

2009-11-13T04:45:00.000-08:00

In September this year RPData released national property growth figures that showed unit growth had caught up to that of houses around the beginning of 2008. They maintained a level growth rate for several months and since the middle of last year apartments have consistently exceeded the rate of growth of houses.

“The equivalent level of capital growth associated with units is a relatively new phenomenon. Over the last ten years houses have outperformed units by about two percent per annum” stated the RPData report.

Traditionally we have seen the capital growth rate of houses in inner city areas clearly exceeding the rate of growth of apartments. There are many reasons for this, possibly the main one being that houses have a land component and are a limited resource, whereas many new apartments have been built, particularly in rezoned industrial areas such as Pyrmont, Alexandria and along the Parramatta River including Concord, Abbotsford, Rhodes and Meadowbank. So why the sudden surge in values?

The RPData report cites some possible reasons. One idea put forward is housing affordability – the national average price for units is around $100,000 less than it is for houses. Other reasons they suggest include an increase in downsizing baby boomers, professionals in their 20s and 30s wanting to live closer to work and the rise in overseas students creating a whole new market. Certainly the first home buyer benefits, which were increased late last year, has seen unprecedented levels of buyer activity in the apartment sector of the market.

Sydney is one of those modern cities where the dream of owning your own home is alive and well. Young families look to move out of apartments into a house with some land soon after (or in anticipation of) having their first child. So the traditional apartment dwellers have been polarized between the young and childless and the empty nester – with some perennial professionals and gays thrown in for good measure. This is in stark contrast to older European cities such as Paris, London or Rome, where families live in apartments and make great use of local parks and community areas.

For more information on property buying, see our website: www.gooddeeds.com.au.

Do the opposite of what everybody else is doing – part 2

2009-11-05T16:53:00.000-08:00

A common refrain at this time of year from weary buyers is “it’s getting close to Xmas, there’s no good property around, I think I’ll stop looking now and wait till next year.” Yet we encourage you to resist this urge to stop looking for a property at precisely the time so many other buyers are giving up.

There are 4 weeks of new auction campaigns yet to commence. In addition to less competition from other buyers, there will be some pretty motivated vendors who decide to list before Xmas – so don’t give up as some good buying opportunities may arise!

For more information on buying property in Sydney go to www.gooddeeds.com.au.

Fellas, don’t let the women to do all the house hunting!

2009-10-29T13:57:00.000-07:00

This is a common scenario we come across: two people are buying a property together and one does all the legwork while the other takes on the role of devil’s advocate. This is often, though not always, the woman in a heterosexual relationship - we have also come across other partnerships suffering from this same imbalance.

Does this sound familiar? After some lengthy research and time spent inspecting numerous properties, she has educated herself about the market – enough to identify a property that she thinks they should buy. Then he takes take a look, says he doesn’t like it, dismisses it quickly, showing no appreciation for all the hard work that has got her to that point. Then she has to go through the whole process again as he becomes educated about the market and what they can buy for their money. By that time, prices have gone up and they can no longer afford what they originally wanted!

If you aren’t going to engage a professional to do the work for you, you really need to spend equal time in the property hunt and have a clear idea of what you want and what compromises you are prepared to make.

For more information on getting help to buy property: www.gooddeeds.com.au

What type of property buyer are you?

2009-10-22T14:42:00.001-07:00

A sellers market often polarizes buyers. We often come across those who are fixated on prices as they were 6 months ago and will never pay market value. And the market keeps moving and they keep getting left behind. The other end of the continuum is the buyer who panics and pays far too much for a property which is often not that great and doesn’t really suit their needs.

Both buyers miss out. Buyer A keeps missing out and ruing the “one that got away” instead of actually getting onto the property ladder. Buyer B gets stuck with an overpriced dud property and gets left behind when it comes to capital growth.

For more information on buying real estate in Sydney look at www.gooddeeds.com.au

A political writer gets it right about property.

2009-10-15T16:33:00.000-07:00

It is very rare that a political reporter makes what I regard a valid and pragmatic point about the property market. However an article in last Sunday’s Sun-Herald by Lisa Carty about Sydney’s suburban dwellers complaining about lack of public transport sure made sense. Following are some of the points that I felt most relevant to buyers:

“The people who buy in the north-west [of Sydney], and the south-west for that matter, are able to buy a family home for far less than those who choose to live closer to the city.

“People who choose to live on the fringe pay much, much less for their homes than those who choose a smaller place – even a unit, God forbid – with better services, closer to the city.”

“The choice for Sydneysiders is stark – you can hold on to your suburban dream and the money you’ll save on real estate you’ll spend on transport.

“Or you can spend a lot more money to buy closer to the city but pay comparatively little for transport, and save yourself hours on the bus or in the car.”

“But the fact is no one made them move to the frontier – it was a choice they made. Sadly, it seems many of them underestimated the real costs, in time as well as money.

“In a perfect world, everyone would have access to great public transport but in our imperfect world, only the filthy rich live without compromise.”

Couldn’t have said it better myself.

Contact me at info@gooddeeds.com.au if you would like a copy of the whole article.

For more information on buying property in Sydney http://www.gooddeeds.com.au

Beware the friendly selling agent.

2009-10-08T14:45:00.000-07:00

These guys are usually great at their job (these guys are usually, in fact, girls). They are great at lessening your pain threshold when it comes to parting with your money. After all, we buy from those we like.

These are the agents who return your calls, answer your questions with sensible answers, even follow you up after you have inspected a property. These are the agents who are very skilful at encouraging you to make offers, register and bid, even pay more than the asking price.

So here’s a thought, maybe you will save money by persisting with those agents that annoy you, irritate you and generally give agents a bad name. After all, there will be plenty of other buyers who will avoid dealing with them, so possibly you could avoid some competition.

For more information on buying property go to www.gooddeeds.com.au.

Home buyers - Do the opposite of what everybody else is doing.

2009-10-01T15:26:00.000-07:00

Last year at this time the market was as flat as a pancake and we were recommending people BUY BUY BUY, but what did the vast majority of buyers do? Sit on their hands. Here are some quotes from our prospective clients at the time.

“It is such a transitional market right now, I think I’ll wait and see what happens”
“There is so much uncertainty in the market, I think I will leave it until early next year unless something changes dramatically.”
“I doubt the market will be rising quickly, and there will be more product next year than right now.”
“I've put my plans on hold for a bit because the market will probably drop even further.”

Do you think these people regret not taking advantage of a buyers’ market?

Now everybody seems to be buying and (maybe it is bad for business to say this but…) maybe we should now be sitting on our hands. Our goal at the moment is to purchase AT market value, not over it and we are advising clients to be very wary of paying over the odds at the moment.

For further information on buying property in Sydney go to www.gooddeeds.com.au

Why would an agent say “no offers” during an auction marketing campaign?

2009-09-24T15:18:00.000-07:00

Here is a little known fact about auction price quoting. Apart from rare situations where the vendor has instructed the selling agent not to entertain pre-auction offers, there is a very compelling reason for agents to discourage offers. If an offer is rejected, they have to increase their quoted price expectation!! And they do not want to do this for fear of not being able to build interest and create a competitive auction.

To give you an example, an agent is quoting a property at “over $900,000”. You make an offer of $950,000, which the vendor rejects. The agent now needs to increase their quoting to reflect the fact that the vendor will not accept anything up to and including $950,000. Perhaps that will turn other buyers off, so don’t be deterred if you want to make an offer prior to auction.

For more information on property buying in Sydney go to www.gooddeeds.com.au

How to pick the best apartment in a large complex.

2009-09-17T14:35:00.000-07:00

Obviously, you can go straight to the top and buy the penthouse, but what if your budget is not so lofty?

We advise our clients to be very wary of large complexes. There is often more than one apartment for sale at any one time, which may offer you choice when you are buying, but can be a problem when you go to sell.

So, if the location, facilities and overall style of the complex appeals to you, how can you ensure you buy the best apartment? Here is a checklist:

· Natural light – the higher up in the building you are, generally the better natural light, however the aspect is crucial so look for a north, north-east or north-west aspect from the living areas.
· Privacy and outlook – preference should be given to apartments that look outside the complex (depending on the outlook of course – or unless there are fabulous landscaped gardens) rather than into other apartments.
· Proportion of rooms – sometimes the bedrooms are larger than the living area, or the ensuite bathroom is larger than the main bathroom, or there is wasted space in foyers and hallways. All these scenarios should be avoided.
· Outdoor space – this should be usable (is there space for a table, chairs, bbq?) and accessible from the living area.
· Noise – avoid apartments next to the entrance, opposite the lift, overlooking a noisy road, etc.

For more information on buying property go to www.gooddeeds.com.au

What to do with competitive offers.

2009-09-10T15:45:00.000-07:00

At the moment it seems like every property under $1,500,000 has numerous buyers fighting over it. So what are your options if somebody else is making offers on the property of your dreams? Here are some to consider:

Option 1 – match the other offer and race to exchange contracts unconditionally
Required steps:
1. Let the selling agent know that you are about to make an offer and want a copy of the contract
2. Have the contract reviewed by a solicitor/conveyancer
3. Order a strata search or building/pest inspection as appropriate (or take the risk of not getting one, though we would never recommend this)
4. Book the bank valuation if you need one (unfortunately this can put you at a disadvantage)
5. Organize to sign the contract and get the 66W certificate signed by your conveyance or solicitor (this waives the 5 day cooling off period)
6. Get the signed contract, 66W and deposit cheque to the vendor’s agent or solicitor and make sure they exchange contracts immediately
The risks are that another buyer might beat you in the race to exchange (especially if they have had a head start) or that you will still need to increase the offer in order to be the successful buyer.

Option 2 – offer the asking price (or even a bit more)
You will then still need to race to exchange as another buyer could still match or better the offer. Depending on whether the selling agent discloses offers or not, this could be a good strategy as the vendor may treat you more favourably – though there are no guarantees.

Option 3 – try to exchange with a cooling off period
Required steps:
1. Let the selling agent know that you are about to make an offer and want a copy of the contract
2. Organize to sign the contract
3. Take the contract and your deposit cheque to the vendor’s agent for exchange
You will then have 5 business days within which to:
4. Have the contract reviewed by a solicitor/conveyancer
5. Order a strata search or building/pest inspection
6. Book the bank valuation
7. Change your mind
However, with other serious buyers it would be unlikely that the agents/vendors would agree to a conditional exchange of contracts. And if you do change your mind, there is a penalty of 0.25% of the agreed purchase price.

For more information go to www.gooddeeds.com.au

What to expect in real estate this spring.

2009-09-03T15:32:00.000-07:00

Traditionally September heralds the start of the spring selling season where the warm weather and blooming gardens inspire people to sell their houses. After the winter listings drought, real estate agents gear up for the year’s busiest period and hope to power on uninterrupted until collapsing in an exhausted heap on Christmas Eve.

Will 2009 be any different? Not according to the selling agents we have been speaking to. Buyers will be able to expect more choice and, hopefully, less of the competition which has seen weekly auction clearance rates exceed 90% in some parts of Sydney.

Many experts are saying that the first home buyer segment of the market will die down and be replaced by investors entering the market. Our enquiry levels certainly support this forecast.

A recent Residex report said that “housing finance results released by the Bureau of Statistics, [showed] that most of the growth in lending is coming from existing home owners on the move. While investor activity is still weak overall, we expect it to increase later this year and increasingly take over the running from first home buyers.”

The report went on further to say that “investors are returning to a housing market which has withstood the traumas of the last two years far better than commodities, property trusts, shares or term deposits. Despite the doom and gloom merchants, the housing market did not crash or even lose any real value.”

In the meantime, the roll-on effect from the first home buyer boom means that the most competitive segments of the market now seem to be 2nd and 3rd home buyers with budgets from $750,000 up to around $1.3 million. Let’s see if the expected high number of spring listings will materialize and dampen the general enthusiasm this year.

For more information go to our website: www.gooddeeds.com.au

How to handle auctions.

2009-08-27T14:40:00.000-07:00

With such high clearance rates at the moment (reported to have been over 70% for three months running), more vendors will be choosing to auction their homes rather than offer them for sale at a price. And competition can be fierce when there is little quality stock out there as well as first home buyers in a rush to buy before the end of September.

We speak to so many buyers about auctions – most hate them – and there are a myriad of opinions on how to best handle them. When bidding for our clients we take into account many variables including who the auctioneer is, who the selling agent is and how clever they are at auction negotiations, how busy the inspections were and what the vibe was, information gleaned from the selling agent about vendor motivations, likely competition levels and, of course, what the property is worth. Here are just a few of our ideas – remember that every auction is different and one technique will not be useful in all scenarios.

Have a clear idea what your budget is and what the property is worth to you. This is the golden rule. Do not deviate from this and you should not get drawn into a bidding war that will result in you overpaying.

Try being the first bidder. This goes against conventional wisdom, which is not to bid until the property is called “on the market”. You have a better chance of controlling the auction if you start it with a strategic bid. But that is the key – this opportunity must not be wasted.

Don’t wait until the property is called “’on the market” to bid. How is it ever going to reach reserve unless people bid?? Seriously, we have seen plenty of properties sell under the reserve at auction after a bit of frantic negotiation between agent and vendor. And not all auctioneers will call the property “’on the market”, so you need to be careful here.

Stare down your opposition. A confident stance can do wonders in out-psyching other bidders and making them think you have bottomless pockets. We see many would-be buyers stop bidding prematurely because they believe the other bidders will stop at nothing.

The highest bidders right to exclusive post-auction negotiation is only a courtesy. The agents and vendors are able to negotiate with any interested party once the property has passed in. They will usually offer the highest bidder the first right of refusal, however there may be other parties suddenly making offers. By leaving the negotiations until after the property has passed in often vendors harden their stance and a good buying opportunity could have passed you by.

For more information check out our website: www.gooddeeds.com.au

Can a buyers’ agent save you money?

2009-08-07T07:03:00.000-07:00

We are often asked this question. The best answer, we believe, is an actual example. Here are some of the ways in which our clients have benefited (or could have saved) from engaging our services:

Apartment 1 – the agent gave us information about the vendor’s circumstances and had we acted on it we could have got the property for $500K. It subsequently sold a week later for $515K. $15,000 potential saving.

Apartment 2 – we were advised by the agent prior to auction that reserve was going to be $510K, and that we possibly could pick it up for $505K. Passed in and sold 3 days later for $521K. Minimum $11,000 potential saving.

House 1 – passed in at auction in December for $1.355M. The agent had been quoting @$1.3M and we felt that it would probably achieve that. The under-bidder was at $1.35M, so this had been a competitive auction and the vendors regretted not accepting the highest bid. In the three months after the auction, Xmas had come and gone, the market had destabilized at this price level, and the property was tainted from having been on the market so long. Through protracted negotiations with the agent we held firm and secured the property at $1.255M. A saving of $100,000.

House 2 – our client came to us after her offer of $727K on a property that was being quoted as “early $700,000s” was rejected. She did not know whether to believe what the agent was saying and was prepared to pay $780K for the property prior to auction. This property uniquely suited her needs and she was prepared to pay a premium for it. After many discussions with the selling agent and assessing the competitive situation, our advice was to wait till auction. Our client was so keen on this house she instructed us to bid up to $827K!! We secured it for $745K, a saving of $35,000 over what she would have paid if left to her own devices and $82,000 less than what she was prepared to pay.

House 3 – similar circumstances to the property above. Our clients were about to make an pre-auction offer and were considering the figure of $807K. Once they engaged our services, we advised them to wait for the auction. Their instructions were to go to $813K if necessary. We secured it for $780K, a saving of $27,000 over what they would have paid without our advice and $33,000 less than they were prepared to pay.

Apartment 3 – Our clients had found a property that they were desperate to buy, and it was in a price bracket that was definitely a buyers’ market. However they agent had suddenly procured another buyer and this was putting pressure on them to pay more than they needed to. Our advice on offer strategy was carefully planned and we secured the property for $2,500,000, which was $50,000 less than the premium they had been prepared to pay. Our clients admitted that without our guidance, they would have succumbed to pressure and fear of losing the property and increased their offer, possibly even over the amount that they had felt comfortable paying.

For more examples, contact us via http://www.gooddeeds.com.au/

Which Sydney suburbs are the best places to live?

2009-08-07T06:56:00.000-07:00

Recently there was an article in Domain titled “Why we live where we live”. The article didn’t specify which suburbs are “best” but the first person to post a comment named Mosman, in Sydney’s Lower North Shore, as their number one suburb. This prompted an avalanche of comments in which Mosman was given a caning!

The following list is by no means the result of a reliable survey but, for what it’s worth, these suburbs were also mentioned as great places to live by other respondents to the article:

Eastern Suburbs – Kings Cross, Darling Point, Elizabeth Bay, Botany, Alexandria, Bronte, Vaucluse (2 mentions!!), Watsons Bay and the postcode 2030, which covers Vaucluse, Watsons Bay, Rose Bay North and Dover Heights

Northern Beaches – Dee Why, Harbord, Narrabeen, Manly

Inner West – Annandale, Summer Hill, Balmain

North Shore – Roseville, Balmoral, Chatswood

St George – Beverley Park (2 mentions!!), Oatley

Northern Districts - Carlingford

Looks like the Eastern Suburbs tops this survey. The one thing everybody seemed to agree on is that the best place to live really depends on what life stage you are in. Common sense really…

Click on this link to read the article and the comments it provoked for yourself: http://blogs.domain.com.au/2009/07/why_we_live_where_we_live_pick.html

For more information on Good Deeds Property Buyers: http://www.gooddeeds.com.au/

Does the Office of Fair Trading protect real estate consumers?

2009-08-03T06:39:00.000-07:00

I have long been of the opinion that the Office of Fair Trading (NSW) is a toothless tiger. Many professional and ethical real estate agents spend a great deal of time and money ensuring their compliance with the various Acts under which they operate, while some pretty shoddy ones keep flying underneath the radar.

It is my belief that consumers have some degree of protection from under-quoting of auction price expectations and also dummy bidding but in my opinion this is due to the attention given the topic by the media combined with the fact that large auction-oriented franchises and agents do not want to be made examples of.

I believe that the vast majority of real estate agents wish to do a good job and operate ethically. However, there remain others who do not do their profession proud. If they are doing anything wrong that does not come under the auction umbrella, it seems unlikely to me that they will taken to task by the Office of Fair Trading. Maybe they just don’t have the resources…

The best chance a consumer has is to level the playing field and engage their own professional to act on their behalf – a buyers’ agent of course!!

For more information on how a buyers' agent can help you: www.gooddeeds.com.au

Location, Location, Location - how to choose a suburb to buy in

2009-07-21T10:34:00.001-07:00

If you are buying a property to live in, the factors affecting suburb choice are markedly different from those involved in deciding on an investment location.

Some of the key factors in choosing a location for your home include:
· Your local knowledge – are you already familiar with the area? Do you know people who already live there?
· Availability of transport to work – good roads or train/bus links.
· Proximity to good schools – particularly if you are relying on the public education system.
· Lifestyle – what is close by for you to enjoy during your leisure time?
· Affordability – the bottom line…

When advising investors, we encourage them to consider the following:
· Buy as close to the CBD as you can afford – you can usually rely on consistent demand from tenants.
· Good transport links – especially train.
· Walking distance from cafes and shops – tenants need reasons to live there other than just being close to work.

For more information on property buying, see our website: www.gooddeeds.com.au

Strata levies - low levies can be a false economy

2009-07-12T23:20:00.000-07:00

Sometimes when pensioners or investors dominate the ownership of a building or complex we see historical pressure to keep strata levies low. The discretionary portion of the levy is the sinking fund contribution, so when building issues arise, or upgrades are required, there is no money in the pot. So, what happens next? Either the issues are ignored, the building begins to look shabby, or a special levy is struck. And, if you are interested in capital growth, all these outcomes can negatively impact the value of a unit or townhouse.

It is now mandatory for owners’ corporations to undertake a 10 year maintenance plan and levy forecast. Those buildings with low levies will face sharp rises if the recommendations in their report are adopted. Those buildings that have been responsible in their financial management and avoided the temptation to keep levies too low will see much more modest increases.

For more information on buying property: http://www.gooddeeds.com.au/

Strata reports - often a long list of repairs is a good sign

2009-07-11T03:10:00.000-07:00

When you read a strata report that documents a litany of building issues it can be easy to be scared off a property. And sometimes it is a warning of impending inconvenience and cost. However, it can also indicate a pro-active strata manager and an owner’s corporation that cares about maintaining their investment. In addition to the list of problems, look for a concerted and continued effort to address the issues. And keep an eye out for potential special levies. This is a sign that there has not been sufficient sinking fund levies in the past to cover these expected repairs.

For more information on how to avoid pitfalls when buying property: www.gooddeeds.com.au

A shameless plug… why use a buyer’s agent?

2009-06-18T19:40:00.000-07:00

Here are just a few reasons:

You don’t sacrifice your weekends and family time.
Searching for a home can become all-encompassing and takes over your life!

We have access to unadvertised listings.
Though, to be honest, motivated vendors are those who pay for advertising. Unmotivated vendors want more than their property is worth – however your perfect property might just be owned by such a vendor and this could be the only way you are going to find it…

Selling agents often give us information that they won’t share with the average buyer.
Our lack of emotional involvement means we won’t have a “knee-jerk” reaction. Also, selling agents know that a buyer’s agent understands the sales process and therefore comfortably share information that can give our clients a distinct advantage over buyers who represent themselves.

If you'd like to know more, go to www.gooddeeds.com.au.

Don’t panic!

2009-06-11T15:31:00.000-07:00

This is the time of year when new listings all but dry up. Many vendors, particularly those with properties lacking natural light, think that spring is the best season to put their property on the market. So as the weather cools, selling agents and buyers alike start to despair…

This is not to say that your dream home won’t come on the market in winter (smart vendors will be listing their properties now!). But the biggest mistake to make is to panic and pay far too much for a property or, worse still, buy something that really isn’t ideal. Take heart, take a breath and wait it out until spring – but don’t completely give up the hunt in case the perfect property does happen to turn up!

The magic question – what will happen to the market after September?

2009-06-10T19:38:00.000-07:00

Ahhhh, if only I had a crystal ball…

For those who haven’t heard, the Federal Government has announced that it will phase out the First Home Buyer Boost, starting with a 50% reduction to $3500 after September 30th 2009 and ending completely on December 31st 2009.

From my observations of recent buyer behaviour, I believe the bonus has motivated many people who were simply thinking of buying to actually get out and buy. However, a lot of first home buyers I speak to are happy to wait till after the bonus starts to shrink before they buy. So I am not sure we will see a sudden decline of buyers out there after September.

On the bright side for buyers, there is usually a lot more property available as vendors often decide to list their properties in spring. Increased stock levels usually have a dampening effect on price growth.

Even if the first home buyer segment of the market grinds to a halt, the flow-on effect will continue for some time as many of those sellers are now buyers upgrading to their second home, and so on.

Overall, it is hard to speculate as there are so many other factors in play at the moment, for instance, low interest rates, talk of recession and job insecurity… Just try to get two economists to agree on the property market outlook!

Some helpful statistics.

2009-06-08T20:24:00.000-07:00

We are always being asked what are the best suburbs to buy in. If you are buying for investment you usually need a combination of yield and capital growth (not taking into account depreciation and other aspects). Recently we compiled this list of top investment suburbs from the Australian Property Monitors database.

Units - we reviewed all Sydney suburbs within a rough 15km radius of the CBD and selected all those with a rental yield of 5% or more and a 3 year average positive capital growth rate of 5% and above. 17 suburbs fulfilled this criteria and a further 12 had yields over 5% and a 3 year average positive capital growth rate of under 5%.

Here are the top 5: Chippendale, Alexandria, Kogarah, Arncliffe, Waterloo

Houses – we reviewed all Sydney suburbs within a rough 10km radius of the CBD and selected all those with a rental yield of 4% or more and a 3 year average positive capital growth rate of over 5%. Note – there are no suburbs within 10-15km radius of the CBD that have this combination of yield and cap growth. 16 suburbs fulfilled this criteria.

Here are the top 5: Chippendale, Alexandria, Lane Cove North, Darlington, Camperdown

If you'd like to see the yields and growth stats for these suburbs, contact me through http://www.gooddeeds.com.au/

Agents have a saying – buyers are liars…

2009-06-05T22:08:00.001-07:00

When I tell this to my clients they are all invariably shocked. But aren’t real estate agents the ones you can’t trust? When was the last time you told an agent how much you had to spend, or how much you were prepared to bid to on an auction property. Buying and selling real estate is often a game of bluff – with buyers and vendors agents facing off and second-guessing each other. Just for something different – try being honest with the next real estate agent you deal with and see if that improves the quality of information you get from them.

The agent isn’t always lying!

2009-06-04T23:54:00.000-07:00

You found a place you want to buy and the agent is telling you there is another offer on the table. You don’t know whether to believe them or not. You don’t want to be so gullible that you just believe them and pay the asking price. But you don’t want somebody else to buy it. More times than not the agent is telling the truth. The real question you need to ask yourself is whether you would be prepared to lose the property for the amount extra the agent is saying you have to pay. If you are, then move on…

More info: www.gooddeeds.com.au