5 tips to help you buy in a slow housing market | LJ Gilland Real Estate

The year is expected to be uneventful for Australia’s property market as conditions remain the same — the fall in home prices, particularly in cities which saw tremendous growth before the downturn, is anticipated to continue while lending rules are predicted to remain strict.

Many believe that the continuous decline in home prices has turned the property scene into a buyer’s market, meaning that it would be easier to get the best deals. It is, however, not the case for everybody. Even in a slow market, there are risks that should be identified and avoided.

Real Estate Buyers Agents Association (REBAA) president Rich Harvey said it is common for buyers to mistakenly infer that they have better odds of acquiring bargains in a less buoyant market. He said that a slow market can have just as many pitfalls as a hot market, exposing inexperienced buyers to the risk of overpaying for property.

“Just because a property gets passed in at auction, doesn’t mean there aren’t two or more people interested who are sitting back, waiting to make their offer post-auction,” Harvey said, adding that any home buyer in this scenario may find themselves going against multiple parties blindly and paying too much for a property.

However, one huge advantage of a slow market is that it gives buyers time. This means that they do not necessarily feel the pressure to rush into a decision. With proper diligence and careful research, buyers have higher chances of getting the best property they can afford. Here are five tips on how you can successfully navigate the slow market and achieve the best deal possible.

Have your financing approved early on

The tight lending market presents a huge challenge for many home buyers — it is not as easy to borrow money from lenders today as it was during the property boom. If you want to get a head start, you have to act early by determining your borrowing power prior to going on a property hunt.

This will prevent any problems caused by finance delays, which can cost you hundreds, if not thousands, of dollars. Be sure to check when your pre-approval expires so that you can properly plot your schedule.

Do your research on your target suburb or area

A responsible buyer must not make hasty decisions. Remember, even if you feel like the market is on your side, it is important for you to still do your job and know what you are doing.

You have to carefully study the market conditions of the suburb where you are planning to buy. Does it have everything you need from accessibility, infrastructure, and lifestyle standpoints? Do you think the suburb has the best prospects in terms of value growth?

With regards to the selection of the property itself, you have to take note of your own needs. Does it have enough rooms for your family? Does the house have features that you believe will be useful to you?

For many market watchers, one vital thing to look for in a house is a car space or a garage. This feature is proven to boost a property’s resale value.

If you are a first-home buyer, you have to remember that it is okay for you not to get your dream home immediately. Start small and be realistic with your goals — take on a property that meets your standards, and more importantly, that you can afford.

Think with a long-term perspective

Buying in a slow market needs a long-term perspective. If you are planning to sell your property in a year or two for profit, then it is best to reconsider your strategy. Housing markets take time to make a significant turnaround after a downturn. In a slow market, it is ideal for you to occupy the property first, make some improvements, and wait for the conditions to strengthen considerably before selling.

This also applies to assess your needs for the next five to 10 years. Ensure that the property will remain suitable for you to avoid selling in the short-term.

Command the negotiating table

In a buyer’s market, you have the power to wield the best weapon against overpaying. One tip to ensure that you get the best deal is to look for a property that has been on the market for a long time. Sellers are usually open to give discounts if their property is not gaining much attention.

However, it is also important to note that being complacent will take you nowhere. Despite having a range of choices in a slow market, you still have to be firm in your decisions. Remember, you may face real estate agents who are professionally trained to negotiate prices.

When negotiating, you also have to be reasonable — bid too high and you risk overpaying, offer too low and you might not be taken seriously. It is all about playing the cards right.

Do not hesitate to seek professional help

Finding the right home is not easy, but help is always out there for those who might feel stuck between choices. You can seek the assistance of local buyer’s agents who have the necessary knowledge of the area or the market you are looking into. They will be able to guide you with regards to the area’s historical performance as well as the macroeconomic conditions shaping the current market trend. While professional help might add another item to your expenses, it can help you protect your budget and get you the best deal possible in a slow market.

Curious on how much you can borrow for a home loan?

L J Gilland Real Estate was formed in 1996 and has grown through word of mouth since then. The company is an independently owned family business based in Brisbane. Whilst the company functions in all sections of the market, L J Gilland has developed a speciality in the prestige investment market. L J Gilland Real Estate have been member agents of the Real Estate Institute of Queensland since 1996 and are holders of all appropriate Real Estate Licenses. On all matter relating to Property Management advice, it’s our dedication, experience and professionalism that counts We are Client focused in our business and we are more than happy to do the utmost for our Clients. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Our Property Management Team offers investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. AT A GLANCE: WE OFFER:- • Property Management – BRISBANE WIDE • Sales of properties with tenants in place • Body Corporate Management • Competitive Commission Rates • LET FEE FOR REFERRALS, We are a business built on 20 years of Referrals. • NO Lease Renewal & Comparable Market Analysis’ Fees/Charges. No hidden fees. • PHOTOS TAKEN ON ENTRY, tenants are shown about safety switches and water mains etc. • We meet all tenants on site. • Hands-on approach to all Property Investment Management Matters. Our goal is simple: to provide the greatest possible net operating income, while continually enhancing the value of the asset. We believe in using proven and new strategies and continually looking for new ways to provide cost savings for the property and the owner. Our vision: To provide a flexible and all-encompassing management service for our customers’ properties and assets. Our values: Exceptional customer service. Transparency, punctuality and reliability. Because we are a family business we have a more personal approach than most other agents, we continue to support your Investment Property Strategies aiming to maximize your rental returns and limit high turnover of tenants which could affect wear and tear on the property i.e. for example we take extraordinary amount of photographs of your property for use in addition to each entry and exit of tenant, not relying on generic RTA condition reports to back up in any potential claim mounted by any future tenant. LJ吉尔兰房地产有限公司 要求在这里免费租赁评估! “您的本地物业管理和销售专家”

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L J Gilland Real Estate was formed in 1996 and has grown through word of mouth since then. The company is an independently owned family business based in Brisbane. Whilst the company functions in all sections of the market, L J Gilland has developed a speciality in the prestige investment market. L J Gilland Real Estate have been member agents of the Real Estate Institute of Queensland since 1996 and are holders of all appropriate Real Estate Licenses. On all matter relating to Property Management advice, it’s our dedication, experience and professionalism that counts We are Client focused in our business and we are more than happy to do the utmost for our Clients. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Our Property Management Team offers investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. AT A GLANCE: WE OFFER:- • Property Management – BRISBANE WIDE • Sales of properties with tenants in place • Body Corporate Management • Competitive Commission Rates • LET FEE FOR REFERRALS, We are a business built on 20 years of Referrals. • NO Lease Renewal & Comparable Market Analysis’ Fees/Charges. No hidden fees. • PHOTOS TAKEN ON ENTRY, tenants are shown about safety switches and water mains etc. • We meet all tenants on site. • Hands-on approach to all Property Investment Management Matters. Our goal is simple: to provide the greatest possible net operating income, while continually enhancing the value of the asset. We believe in using proven and new strategies and continually looking for new ways to provide cost savings for the property and the owner. Our vision: To provide a flexible and all-encompassing management service for our customers’ properties and assets. Our values: Exceptional customer service. Transparency, punctuality and reliability. Because we are a family business we have a more personal approach than most other agents, we continue to support your Investment Property Strategies aiming to maximize your rental returns and limit high turnover of tenants which could affect wear and tear on the property i.e. for example we take extraordinary amount of photographs of your property for use in addition to each entry and exit of tenant, not relying on generic RTA condition reports to back up in any potential claim mounted by any future tenant. LJ吉尔兰房地产有限公司 要求在这里免费租赁评估! “您的本地物业管理和销售专家”

L J Gilland Real Estate was formed in 1996 and has grown through word of mouth since then. The company is an independently owned family business based in Brisbane. Whilst the company functions in all sections of the market, L J Gilland has developed a speciality in the prestige investment market. L J Gilland Real Estate have been member agents of the Real Estate Institute of Queensland since 1996 and are holders of all appropriate Real Estate Licenses. On all matter relating to Property Management advice, it’s our dedication, experience and professionalism that counts We are Client focused in our business and we are more than happy to do the utmost for our Clients. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Our Property Management Team offers investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. AT A GLANCE: WE OFFER:- • Property Management – BRISBANE WIDE • Sales of properties with tenants in place • Body Corporate Management • Competitive Commission Rates • LET FEE FOR REFERRALS, We are a business built on 20 years of Referrals. • NO Lease Renewal & Comparable Market Analysis’ Fees/Charges. No hidden fees. • PHOTOS TAKEN ON ENTRY, tenants are shown about safety switches and water mains etc. • We meet all tenants on site. • Hands-on approach to all Property Investment Management Matters. Our goal is simple: to provide the greatest possible net operating income, while continually enhancing the value of the asset. We believe in using proven and new strategies and continually looking for new ways to provide cost savings for the property and the owner. Our vision: To provide a flexible and all-encompassing management service for our customers’ properties and assets. Our values: Exceptional customer service. Transparency, punctuality and reliability. Because we are a family business we have a more personal approach than most other agents, we continue to support your Investment Property Strategies aiming to maximize your rental returns and limit high turnover of tenants which could affect wear and tear on the property i.e. for example we take extraordinary amount of photographs of your property for use in addition to each entry and exit of tenant, not relying on generic RTA condition reports to back up in any potential claim mounted by any future tenant. LJ吉尔兰房地产有限公司 要求在这里免费租赁评估! “您的本地物业管理和销售专家”

 

L J Gilland Real Estate was formed in 1996 and has grown through word of mouth since then. The company is an independently owned family business based in Brisbane. Whilst the company functions in all sections of the market, L J Gilland has developed a speciality in the prestige investment market. L J Gilland Real Estate have been member agents of the Real Estate Institute of Queensland since 1996 and are holders of all appropriate Real Estate Licenses. On all matter relating to Property Management advice, it’s our dedication, experience and professionalism that counts We are Client focused in our business and we are more than happy to do the utmost for our Clients. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Our Property Management Team offers investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. AT A GLANCE: WE OFFER:- • Property Management – BRISBANE WIDE • Sales of properties with tenants in place • Body Corporate Management • Competitive Commission Rates • LET FEE FOR REFERRALS, We are a business built on 20 years of Referrals. • NO Lease Renewal & Comparable Market Analysis’ Fees/Charges. No hidden fees. • PHOTOS TAKEN ON ENTRY, tenants are shown about safety switches and water mains etc. • We meet all tenants on site. • Hands-on approach to all Property Investment Management Matters. Our goal is simple: to provide the greatest possible net operating income, while continually enhancing the value of the asset. We believe in using proven and new strategies and continually looking for new ways to provide cost savings for the property and the owner. Our vision: To provide a flexible and all-encompassing management service for our customers’ properties and assets. Our values: Exceptional customer service. Transparency, punctuality and reliability. Because we are a family business we have a more personal approach than most other agents, we continue to support your Investment Property Strategies aiming to maximize your rental returns and limit high turnover of tenants which could affect wear and tear on the property i.e. for example we take extraordinary amount of photographs of your property for use in addition to each entry and exit of tenant, not relying on generic RTA condition reports to back up in any potential claim mounted by any future tenant. LJ吉尔兰房地产有限公司 要求在这里免费租赁评估! “您的本地物业管理和销售专家”

Wonderful service and excellent outcomes across the board – 25 Feb 2018 Linda and Carlos have been a pleasure to work with during the 10 years they managed our investment property, including the eventual sale. Engaging and personable, Linda and Carlos are always professional and consistently provide excellent, attentive service. I love the way they keep everyone informed in a timely manner and always seek the best outcomes for all parties involved. It’s been a wonderful association and I couldn’t be more enthusiastic about recommending their services. https://www.ratemyagent.com.au/real-estate-agent/linda-debello/reviews/3-planigale-cres-north-lakes-aajz43 Very helpful – 25 Feb 2018 Carlos was very helpful along the way. Thank you! https://www.ratemyagent.com.au/real-estate-agent/linda-debello/reviews/3-planigale-cres-north-lakes-aajz5u Removing the Hassle from Sales & Rentals Brisbane Wide https://www.ratemyagent.com.au/real-estate-agent/linda-debello/reviews/32-musgrave-st-north-lakes-aail7o https://www.ratemyagent.com.au/real-estate-agent/linda-debello/reviews/19-eaton-cl-north-lakes-aaj14y https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/16-st-clair-court-redland-bay-aag45d https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/6-greenmeadow-road-mansfield-aafms7 https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/11-reynolds-cl-redbank-plains-aafwtr https://www.ratemyagent.com.au/real-estate-agent/lj-gilland-real-estate/reviews/11-reynolds-cl-redbank-plains-aafu86 http://www.facebook.com/ljgrealestate & Find Us on Google+

The year is expected to be uneventful for Australia’s property market as conditions remain the same — the fall in home prices, particularly in cities which saw tremendous growth before the downturn, is anticipated to continue while lending rules are predicted to remain strict.

Many believe that the continuous decline in home prices has turned the property scene into a buyer’s market, meaning that it would be easier to get the best deals. It is, however, not the case for everybody. Even in a slow market, there are risks that should be identified and avoided.

Real Estate Buyers Agents Association (REBAA) president Rich Harvey said it is common for buyers to mistakenly infer that they have better odds of acquiring bargains in a less buoyant market. He said that a slow market can have just as many pitfalls as a hot market, exposing inexperienced buyers to the risk of overpaying for the property.

“Just because a property gets passed in at auction, doesn’t mean there aren’t two or more people interested who are sitting back, waiting to make their offer post-auction,” Harvey said, adding that any home buyer in this scenario may find themselves going against multiple parties blindly and paying too much for a property.

However, one huge advantage of a slow market is that it gives buyers time. This means that they do not necessarily feel the pressure to rush into a decision. With proper diligence and careful research, buyers have higher chances of getting the best property they can afford. Here are five tips on how you can successfully navigate the slow market and achieve the best deal possible.

Have your financing approved early on

The tight lending market presents a huge challenge for many home buyers — it is not as easy to borrow money from lenders today as it was during the property boom. If you want to get a head start, you have to act early by determining your borrowing power prior to going on a property hunt.

This will prevent any problems caused by finance delays, which can cost you hundreds, if not thousands, of dollars. Be sure to check when your pre-approval expires so that you can properly plot your schedule.

Do your research on your target suburb or area

A responsible buyer must not make hasty decisions. Remember, even if you feel like the market is on your side, it is important for you to still do your job and know what you are doing.

You have to carefully study the market conditions of the suburb where you are planning to buy. Does it have everything you need from accessibility, infrastructure, and lifestyle standpoints? Do you think the suburb has the best prospects in terms of value growth?

With regards to the selection of the property itself, you have to take note of your own needs. Does it have enough rooms for your family? Does the house have features that you believe will be useful to you?

For many market watchers, one vital thing to look for in a house is a car space or a garage. This feature is proven to boost a property’s resale value.

If you are a first-home buyer, you have to remember that it is okay for you not to get your dream home immediately. Start small and be realistic with your goals — take on a property that meets your standards, and more importantly, that you can afford.

Think with a long-term perspective

Buying in a slow market needs a long-term perspective. If you are planning to sell your property in a year or two for profit, then it is best to reconsider your strategy. Housing markets take time to make a significant turnaround after a downturn. In a slow market, it is ideal for you to occupy the property first, make some improvements, and wait for the conditions to strengthen considerably before selling.

This also applies to assess your needs for the next five to 10 years. Ensure that the property will remain suitable for you to avoid selling in the short-term.

Command the negotiating table

In a buyer’s market, you have the power to wield the best weapon against overpaying. One tip to ensure that you get the best deal is to look for a property that has been on the market for a long time. Sellers are usually open to give discounts if their property is not gaining much attention.

However, it is also important to note that being complacent will take you nowhere. Despite having a range of choices in a slow market, you still have to be firm in your decisions. Remember, you may face real estate agents who are professionally trained to negotiate prices.

When negotiating, you also have to be reasonable — bid too high and you risk overpaying, offer too low and you might not be taken seriously. It is all about playing the cards right.

Do not hesitate to seek professional help

Finding the right home is not easy, but help is always out there for those who might feel stuck between choices. You can seek the assistance of local buyer’s agents who have the necessary knowledge of the area or the market you are looking into. They will be able to guide you with regards to the area’s historical performance as well as the macroeconomic conditions shaping the current market trend. While professional help might add another item to your expenses, it can help you protect your budget and get you the best deal possible in a slow market.

Curious on how much you can borrow for a home loan?  Talk to us as we can refer to you best practice finance professionals whom have helped our Valued Clients over more than 22 years…..

 

Australia is about to get its second strike this year as it maintains its position as the world’s weakest-performing housing market for the second year in a row, according to a rating agency’s projection.

A recent report by Fitch Ratings predicts that house prices in Australia will fall by another 5% this year, making it the worst amongst the 24 countries monitored by the credit rating agency.

The national housing market ended 2018 with a 6.7% house price decline, driven by the muted demand from investors. Sydney and Melbourne, Australia’s largest housing markets, have already recorded peak-to-trough declines of 11% and 7.2%, respectively, as of last month.

“We expect price declines to continue at a similar pace in 2019 in Sydney and Melbourne, where larger falls have occurred,” the report said.

Another cause of concern is Australia’s household debt-to-GDP ratio, which has already hit 121%. This, according to Fitch, represents a material risk to the economy.

However, banks are attempting to mitigate the hazards by tightening their lending rules. As first-homebuyers struggle to get their funding, housing credit growth is predicted to tighten further to 3.5%, from 5.1% in October.

The tough lending environment will also result in a slight increase in mortgage arrears of over 90 days.

“Properties in possession will take longer to sell as home prices fall, so loans will remain delinquent for longer. Early-stage mortgage arrears — 30 to 90 days in arrears — will be broadly stable in 2019,” the report said.

 

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Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. LJ Gilland Real Estate Pty Ltd LREA推荐书LJ Gilland房地产 http://ljgrealestate.com.au/testimonials/ http://ljgrealestate.com.au/competitive-commission/ http://ljgrealestate.com.au/property-management/ http://www.facebook.com/ljgrealestate L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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