Press release 2:
Seize the day and make it pay
Bricks and mortar bought today will lay the foundations for some future fortunes as the Australian property market experiences a natural correction.
It’s said that fortune favours the brave and that will be the case for those who are in a position to take advantage of the opportunities that are emerging in this downward phase of the traditional property cycles.
Re/Max property associate Michael Knights said that although there was a widespread public perception that rising interest rates were bad for everyone, that was not completely true.
“We are expecting an adjustment to the market and while that will unfortunately bring bad news for some it will be good news for those who are in a position to take advantage of the changing market.
“There is a world of opportunity out there and the SunshineCoast market will be largely protected from many of the issues that will arise in other areas because it offers such a wonderful lifestyle,” said Mr Knights, a real estate agent and property owner with almost 20 years experience.
His market knowledge is the result of personal experience, having joined the industry during the recession we had to have in the early 90s. Since then he has watched the market grow and change, bringing opportunities for those who were prepared and informed about what was happening in the marketplace.
Based on his experience he has some advice for those who are about to enter or extend their position in the market.
- I recommend requesting up to a 120-day settlement period and longer if you need it. This gives buyers and sellers time to do research, organise loans and renovations, book children into schools and organise work issues, making the move stress free.
- Save as much extra money as you can prior to settlement and put that money down as an extra payment in advance. Paying this extra payment on the day of settlement and then continuing with your payments as normal will save you thousands over the life of the loan.
- And never be afraid to negotiate hard on the price, especially if the market does adjust a little. The length of time houses remain on the market will be extended so this will make the property more negotiable so don’t be shy with a lower offer. The sellers can always say no but they might say yes. Remember, you really do make your money when you buy, not when you sell.
Buying property has to be seen as a business decision and should be a numbers game, Mr Knights said.
Emotion has to take a back seat as you consider the areas of opportunity that are out there.
“Rental properties are in huge demand and rental prices will continue to rise, and homes in prime locations near the beach, schools and the outer regions will always be in demand,” he said.
And look for homes that are easily improved.
“People downsizing and the baby boomer generation’s willingness to move is creating a very ‘hot market’ while larger families are creating a ‘moving market’ as they look to move up into those larger homes.
“They are often in original condition and need only minor cosmetic changes making them the perfect renovation project which will increase the home’s value,” he said.
For those buyers looking for a new home the market will provide a good opportunity as the builders’ margins won’t be as high as competition between builders and contractors heats up, bringing prices down.
And first home buyers can look out for opportunities where the government will be forced to subsidise infrastructure or lower the charges for such facilities in new developments so that homes are more affordable.
But despite the vast array of opportunities there will be people in the market that may lose money on the sale of their property.
For those in facing that situation his best advice is to try and hang on and do whatever you can to get through the tough times.
“Whether the market is in a rising cycle or a dropping cycle or even when it remains flat there are always those who find themselves in some kind of hot water.
“Don’t wait too long to get advice. You should seek help before you find yourself in a ‘forced-to-sell’ situation. If you can hold on and get through the tough times you won’t lose as in the long term property prices will continue to rise steadily.
“You should sell because you want to, not because you have to,” Mr Knights said.
For any real estate advice call Michael Knights on (07) 5452 4544 or 0415 455 826.