Everyone wants to secure themselves a bargain property particularly with interest rates at record lows.
The Reserve Bank of Australia decided to once again keep rates at 1.5 per cent on Tuesday, for the ninth month in a row.
It also suggested that days of rates going any lower could be done, with the central bank appearing more upbeat about the economy in its monthly statement.
This means that the next move in rates could be up, and if it is, that’s likely to test further house price growth.
Until that happens, affordability remains an issue for many Australians. So how do you truly spot a bargain?
Here are three simple rules you can follow to help secure yourself a great deal when buying your next property.
Keep an eye out for old listings.
These are properties that have been on the market for an extended period of time.
For suburbs with a high turnover of property, that could be as little as eight to twelve weeks, however, for other areas, such as smaller rural towns, that could mean anywhere from six to twelve months.
A simple way to find these properties is by heading over to realestate.com.au – set the search criteria for the suburb and type of property you’re after and change the results view to ‘sort’ by Date: ‘oldest to newest’.
Why would you do this? If a vendor has been trying to sell their property for an extended period, there is a higher chance of them being more flexible about the price they accept.
Does it have renovation potential or need cosmetic changes?
If you’re open to doing a little bit of work and getting creative, then finding a property that’s in the ‘too hard basket’ for other buyers can be a real winner for you.
There are a lot of buyers out there who will only purchase a property that is move-in ready, often overlooking other features that offer a lot of value, but need a little TLC.
You can certainly reap the rewards if you’re not afraid of putting in a little bit of hard work.
Does it have future potential?
These are properties that’ll be worth more than just the land and house value that it currently has.
Should they represent the opportunity for future development of say units, townhouses, or a subdivision, they’ll likely deliver a larger return on your investment if you’re willing to play the waiting game.
But remember, not all great deals look the same and what appeals to you may not appeal to someone else.
Make sure you always carry out your due diligence and choose a property that fits your current needs and budget.