Sydney property prices are on the rise again.
Here, we offer some tips and techniques to make sure you don’t miss out if you’re interested in buying property in an increasingly competitive market.
The Sydney property market has recorded one of its fastest rebounds in decades, with some suburbs even seeing a return to boom time levels for some areas, according to Domain’s September House Price Report. The city’s median price is up 4.8 per cent to $1,079,491, with unit prices on the rise alongside house prices. The rapid recovery has so far defied all price forecasts.
Here’s what you need to know if you’re looking to buy now.
Research is key. Make sure that you have the latest information about what’s been happening in the market over the past three to six months, as information from six to nine months ago is now irrelevant. It’s important to be constantly educating yourself, particularly about what similar, or comparable, properties have sold for in the same area you’re hoping to buy in.
Get your finances in order
Interest rates have changed again recently so you should be shopping around for the best deal. Make sure that your bank has the most up-to-date information about your finances, as any changes could affect your borrowing capacity. Be aware that loans are still taking longer to process than they used to, so it pays to get your finance approved now, so that you’re ready to jump on a great property fast when you find the perfect property.
Use a buyers’ agent
Buyer’s agents are becoming increasingly popular as a way to buy property in Sydney. They offer a number of advantages in a competitive market such as Sydney’s Eastern Suburbs, including helping you work out what areas are within your reach, or not, and connecting you with off-market listings. A good buyer’s agent will also know the market you’re looking to buy in inside-out and be able to negotiate the best price for you.
While it may be tempting to wait to see where the market goes, there can be an opportunity cost of doing so. When a market is rising, it may be better to pay a bit more now than pay more later and miss out on locking in those market gains yourself. While you obviously shouldn’t over-stretch past what you can afford to repay, paying a small amount more now may save you money in the long run should prices continue to rise.
Consider becoming a flipper
This is a plan best left to those with renovating experience, good contacts, and a healthy budget that allows for market changes and unforeseen costs. But when a market is recovering it can be a good time to snap up a fixer-upper, renovate fast, and then cash in before house or unit prices return to peak levels. Savvy buyers with know-how and tradie connections are seizing the opportunity to quickly flip for a profit. These opportunities may not last if the market continues to rise.
Look for new infrastructure
Buying in an area that has infrastructure developments on the cards is one way to be sure that you’re buying in an area that will continue to see capital gains. Look for transport initiatives such as new train lines and motorways or new parks. Any large-scale development that has the potential to rapidly change the accessibility or liveability of an area can predict future price rises. In the East, we pick Randwick, Kingsford and Kensington, which will all benefit from the opening of the new light rail and the existing hospital and university precincts.
Be aware of off-market opportunities
In a rising market, many great properties may not even make it to market before they’re snapped up. Be sure to register for our off-market listings to make sure that you don’t miss out.
If you’re looking to buy or sell in Sydney’s eastern suburbs contact my team today.
Sydney’s Eastern Suburbs Market Snapshot
A detailed annual assessment of the property market focusing on the Eastern Suburbs of Sydney, Australia.