It might seem counter-intuitive, but this year is actually better than last year for prospective property buyers looking to purchase strategically, according to a leading national buyers’ agent.
With lending for homebuyers and investors reducing since interest rates began rising at the start of May, as well as property prices softening in many locations, opportunities were opening up for savvy buyers with smaller budgets, Adviseable Property Buyer Kate Hill said.
“Some of the property prices that emotional homebuyers were paying last year were completely bonkers to the tell the truth,” Ms Hill said.
“This meant that we stayed on the sidelines more often, because as buyers’ agents working in our client’s best interests, we couldn’t – and wouldn’t, I might add – compete with the buyer frenzy that was under way in many parts of the nation.
“Now, though, we have fewer buyers active, more listings available in some markets, plus rising interest rates has stopped some people from even purchasing at all.”
Ms Hill said buying when others were not, as long as you are strategic with your asset and location selection, was always a sound strategy – regardless of the lending environment at the time.
“When buyer activity fell through the floor at the start of the pandemic, the smartest buyers and investors used the opportunity to purchase the best properties at the lowest prices in the most desirable locations. The market conditions at the time were optimal,” Ms Hill said.
“Now, we are seeing vendor discounting on properties as the market reality hits home to sellers. Plus, there just isn’t the market insanity that was in play sometimes last year.
“Homebuyers and investors with budgets up to $600,000 can definitely purchase a dwelling in a desirable location. You just need to know where and you need to know the right property type.”
Northern Adelaide (SA)
“Northern Adelaide still has houses available around the mid $400,000 market, as well as one of the lowest vacancy rates in the country,” Ms Hill said.
“The area has a number of excellent growth drivers, plus, with its affordable property prices and strong rental market, five per cent yields are common.
“This means that mortgage serviceability calculations will be more favourable to investors keen to purchase property in this part of the South Australian capital.”
“Ballarat has been classed as one of our nation’s strongest regional cities from a property investment point for a view for some time because of its diverse economy, low unemployment, population growth, as well as it been seen as a commuter city for Melbourne,” Ms Hill said.
“Compared to property prices an hour away in the Victorian capital, Ballarat suburbs have median house prices from $450,000 for a basic three-bedroom house.
“This means that the city is appealing as an affordable lifestyle alternative for homebuyers and investors with its property market becoming increasingly busy over recent months in particular.”
“On the western outskirts of Greater Brisbane, the affordable region of Ipswich continues to be a sound investment location for homebuyers and investors alike.
“The area’s property market has a plethora of houses available for under $600,000, as well as a super strong rental market and healthy yields of between four and five per cent.
“The region’s economy has a diverse number of industries, including the Defence Force, and is one of the fastest growing areas of booming Southeast Queensland.”
4. Latrobe (Vic)
“This popular regional location, on the ‘other side’ of Melbourne, is often over-looked by investors and homebuyers when it really should be on their radars,” Ms Hill said.
“Latrobe features some suburbs with median house prices under $600,000 as well as yields of about four per cent.
“The region is home to a variety of industries, including a high-tech precinct, as well as being within a reasonable commute of Melbourne.”
As always it comes to making savvy and expert decisions in terms of location and property type, you can’t just buy any old house in any old street, you need local know-how and expert guidance. That’s where your trusty buyer’s agent at Adviseable comes in handy 😊