How to Get Ahead of the Cooling Market

Property prices have begun the cooling process and show no signs of slowing down, with forecasts of a 10-15% decline in value on track to come true. Lloyd Edge, Founder and Director of Aus Property Professionals, enlightened current and potential investors on how best to capitalize on a falling market.

“For savvy real estate investors and home buyers, the declining market presents an opportunity to get better value for money,” he said. Mr. Edge’s experience as an investor, which led him to acquire a portfolio valued at $15 million, underscored that investors should seek properties below market value.

“A buyer who pays below the perceived market value of a property will have realized instant equity in the property, meaning they have made a profit from day one and can use that equity to continue to grow their portfolio. real estate,” he said.

One of the best ways to find such a property, Mr. Edge confessed, is to harness the skills of a buyer’s agent, who is able to use their wheelhouse of skills and expertise to “uncover gems outside market”.

Another strategy for capitalizing on a falling market is to take advantage of an increased desire to sell and buy property from someone who is desperate to offload their property and avoid further loss in value.

He warned that ‘some sellers may want to sell quickly because there is something wrong with the property’; to mitigate this risk, he advises investors to conduct a full in-person inspection and order a full property report and pest inspection.

Furthermore, he implored buyers to be willing to negotiate terms, as “flexibility is a powerful negotiating tool to bring to the table”, especially in the case of motivated sellers. He also advised investors to be proactive about their finances.

Mr Edge said that by consulting a mortgage broker, potential investors will gain a better understanding of their borrowing capacity as well as secure pre-approval for their loan.

“This will ensure you don’t run out of properties while submitting your documents and waiting for banks or brokers to respond to you,” he said, adding that “if your financing is ready, you will have the opportunity to make an unconditional offer.

His final piece of advice for investors wishing to take advantage of current market conditions is to make themselves known to local agents.

“Let them know your buying criteria and budget, ask to be contacted with off-market opportunities and when new properties are listed. Ask to be added to their mailing list, so you can be one of the first to hear about new listings and inspect a suitable property when it becomes available,” he said.

Mr Edge concluded that people should “buy when they can afford it, when their finances are in order, and ultimately they will be better off in the long run”.

How to Get Ahead of the Cooling Market

spinnaker logo

Last update: July 19, 2022

Posted: July 20, 2022