To help take advantage of increased housing affordability in the current market, Mr Clarke – Director of Plantation Palms – offers the following five tips for homebuyers looking to secure a good deal:
1. Understand your buying power: It’s a buyer’s market and many consumers may not realise the extent of their buying power. In the current economic slowdown, consumers are in good position to negotiate not only on price but also on time. For example, consumers should consider options to best suit their financial situation, such as extended settlement term to allow them to secure their preferred lot whilst giving them time to finalise finance requirements.
2. Know your options on securing finance: Many homebuyers can find themselves struggling to save for deposit on a home, despite being in a position to afford mortgage repayments. Yet there is more than one way to secure finance for a deposit of 10%. Although genuine savings is important, talk to your mortgage broker or financial adviser on strategies to secure your deposit.
3. Look to the future: When buying property, it’s important to look to the future to determine opportunities for growth and return on investment. Talk to your real estate agent or salesperson and local council about new developments planned in the surrounding area, such as road works or transport links, new schools or other infrastructure. These could have a significant impact on the value and price of a property over time.
4. Investigate options for increasing value-add on new builds: While the cost of new builds cannot always be bargained down, there is room to manoeuvre when it comes to value-add. Talk to your developer or builder on how you can include upgrades within your current budget, such as more premium fixtures or including landscaping and fencing.
5. Take advantage of property cycles. The property market is cyclical and understanding when is the right to buy or sell can make a huge difference in savings and returns. Going with the trend for instance, and buying when everybody else is, might not always give you the desired outcome, as competition tends to push prices up – this is great for sellers but is not always the case for buyers looking for a good deal, especially buyers who are new market entrants.
If you are looking to take advantage of the great deals available in the market today contact Grant on 07 4954 9700.