According to CoreLogic, Australian property prices has been rising since March this year with National Home Value Index (HVI) rising 1.1% in June 2023. Sydney home values increased another 1.7% in June, taking cumulative recovery since January through to 6.70%. Although the interest rates are rising, a lack of available supply continues to be the main factor for house prices rising. As the prices are rising, it is very important to know what a property is worth to avoid paying too much for it. It’s about doing your homework, knowing what you want, knowing the market and making sensible offers.
Below are some tips for home buying,
Set a benchmark
Comparing nearby properties that have sold recently is the best way to assess an acceptable price for the property you are looking at and provides a valuable bargaining tool when you are negotiating with a seller or agent. Make sure the properties are comparable, with a similar land size and number of bedrooms, so you aren’t measuring apples against oranges.
Some Property websites can let you research sold properties by suburbs
Click here to search sold properties by suburbs in Realestate
Click here to search sold properties by suburbs in Domain
Keep in mind current market conditions
The property market is always changing, so doing this research once and sitting on it for a few months will offer little help. Going to open homes and auctions regularly will give you insight into the current state of the market and how much certain properties are going for.
Expand your search
Don’t limit yourself to a particular area or suburb, take a look around to expand your options. You might find your dream property just a couple of suburbs away that still meets all your needs.
Don’t exceed your financial capacity
If you’ll be taking out a loan to purchase a property, it’s a good idea to seek pre-approval before you start making offers.
Aside from meaning that when you do eventually make an offer it will be taken seriously by the seller or their agent, having finance sorted out means that you can be sure of what your stamp duty and associated costs are, and exactly what price range you can consider.
Remember, even if a lender approves you for a particular loan amount, it doesn’t mean you have to accept it. A higher loan amount means higher interest charges over the life of the loan, increasing the total cost of the property purchase. Only ever commit to a loan that you can afford alongside your current income and real expenditure.
When calculating figures for the price of a home, ensure you also budget for maintenance and repair costs, as well as any other expertise you may require in the purchasing process.
Bring in the extra support
You may want to consider using the services of a buyer’s agent, they can help you with things like negotiating a price or bidding for you at an auction.
Please do not hesitate to contact our broker Anup directly on 0415900264 or click here for contact details to discuss home buying scenarios.
Draw Equity
