10 Tips for Hunting Bargain Properties in Sydney
Sydney’s real estate market is exhibiting considerable growth and is showing no signs of slowing down. This growth comes with soaring high prices that make nabbing quality homes for a bargain a tad too difficult.
The good news is SOME SUBRUBS ARE STILL FLYING UNDER THE RADAR. Yes, there are still many home bargains available; however, real estate agents in Sydney don’t advertise them—they are reserving their best deals for buyers who they will know will give them a quick sale.
Now, the question that begs asking is: How do you find investment property bargains and not ‘lemons’ in the current Sydney market?
Push a little further out
Homebuyers are scrambling for properties near the city centre or the harbour where access to amenities, such as public transport, is very convenient.
Rightfully so, but you are looking at about $800,000 now if you want a decent two-bedroom. The current market situation makes your $750,000 only capable of buying a small place. So why not push further out?
As mentioned, many Sydney suburbs are still flying under the radar. Consider Busby, Westmead and Wentworthville where you can still find a decent home at $450,000.
Be ready to buy when the time is right
Timing is everything when it comes to making property investment in Sydney. Experience tells us that the best time to buy is at the bottom of the real estate market cycle—that moment before prices start to rise again. So observe and study the market closely and make sure you are ready to buy when the time is right because NO ONE RINGS A BELL WHEN THE MARKET REACHES ITS BOTTOM.
Work the numbers
Finding a bargain means knowing the market. “When considering a purchase ensure that you look at what other properties have sold for in the local area and what price other properties are listed for,” RP Data Senior Analyst, Cameron Kusher, advised.
This entails assessing the local median sales price over time in your chosen suburb so as to get insight on what you can expect when buying in that area. You will need to collect the following information:
- Capital growth history
- Average vendor discount
- Length of time to sell a property
- Gross rental yield and median weekly rents
Getting the numbers may not be enough though. To get to the true story, you need to dig deeper by looking for suburbs with good level of amenity but have lower median price, and then compare it to nearby suburbs with similar characteristics.
Get yourself a motivated seller
Sellers who are looking for quick cash can give you the bargain you are looking for. So when hunting, pay particular attention to the reasons of the sale and the circumstances of the seller, and try to gauge how motivated the seller is. Knowing all these will give you an advantage during the negotiation.
Of course, to win the deal, make sure your finances are ready so you are prepared to buy any time.
Watch out for infrastructural development
New shopping centres, train lines, and other amenities can drive rental yields and capital growth up, helping many undervalued suburbs boom after increased infrastructural developments. So, don’t snub those under-the-radar locations that are scheduled for development or where councils are planning to rezone.
Finding a bargain property in Sydney is harder than anywhere else in the country, but that does not mean it is impossible. With a little help from BAP, you are sure to find the perfect home for you at a price you can afford.
