How To Find Bargain Properties In Sydney
Finding bargain properties in Sydney will appear to be a daunting challenge. In the first place, property values in Australia have been steadily rising since the year 2000. Despite a drop off in 2009, real estate prices have made their way back to its highest levels in the property market. The median property price of housing in Australia in 2015 was at AUS$ 612,200. The highest growth among the cities was registered by Sydney which increased by 19.9% to AUS$ 780,000.
Secondly, there aren’t many properties for sale to accommodate increasing demand in the market. Foreign money continues to pour in mostly from China, Hong Kong and Singapore and these are driving property values in some areas to AUS$ 1Million.
Real estate prices in Australia are expected to continue their uptrend due to the Reserve Bank of Australia’s reduction in the cash rate by 25 basis points to 1.75% last 3 May 2016. Analysts believe the downward adjustment in the cash rate would encourage prospective home buyers to apply for home loads despite the stricter qualifying measures set by the RBA.
With conditions supporting continued increase in property prices and a dearth in the number of properties for sale, is it conceivable to find bargain properties in Sydney?
The answer is “Yes”.
1. The first step is to contract the services of a Buyer’s Agent in Sydney. If you want to find bargain at a time of accelerating prices in the most prestigious city of Australia, you must have someone in your corner who knows the property market of Sydney very well.
Presently with demand rising and supply falling, conditions in the property market have established a Seller’s Market. In a seller’s market, many property owners are putting off having their homes listed to capitalize on rising prices. The risk of having property listed at a time when prices are still rising is that if it remains unsold in four months, its perceived value may decline.
This is why many property owners, especially those who have no liquidity issues or whose assets are below market are not actively selling through the real estate agencies. Buyer’s Agents have connections to these people and may convince them to open their homes for you to visit.
2. Second, you may wish to consider looking for properties in the inner and middle suburbs of Sydney where the number of approved housing permits is higher compared to the outer suburbs. However, keep in mind that the majority of housing consists of high density development projects that cater to multi-family dwellings.
Your Buyer’s Agent can potentially recommend a number of properties in the inner and middle suburbs that could meet your budget, desired features and neighborhood.
3. Third, you may also wish to consider areas earmarked by the local government for gentrification. Among these cities are Coburg and Footscray. These cities have been growing slowly and steadily since 2009. Once described as “grungy”, these cities are now transitioning to more “hip” status as commercial complezes, cafés and restaurants and suburbs are being established.
Property in Footscray cost AUS$ 682,500 and AUS$ 750,000 in Coburg. These are much more affordable than Carlton where the median property price is AUS$ 1.1 Million. Footscray and Coburg are also reasonably close to Sydney’s Central Business District or CBD.
4. Fourth, of course there are the auctions which remain prevalent in Sydney. These auctions can be competitive and having a Buyer’s Agent on your side will help your prospects of finding the best price for the property. To succeed in an auction requires experience and precision when implementing strategy.
The best Buyer’s Agents have gone through many auctions that they have developed a feel for the proceedings. They can tell which buyers have given up their position or are limited in resources. A Buyer’s Agent can also assist you in negotiating with the seller. A Buyer’s Agent has been on both sides of the transaction. They have a good idea of the seller’s negotiation position.
5. Fifth, the Buyer’s Agent will also know where the cheapest suburbs are in Sydney. Seasoned Buyer’s Agents are aware that entry level homes in Sydney are cheaper than those in Melbourne.
Statistically, the lowest 10% of the Greater Sydney property market was cheaper than Melbourne and Canberra by 4% and 27% respectively. Some of the most affordable housing prices can be found toward west of Sydney. Blackett which is located 50 kilometers west of Sydney has a median housing property price of AUS$ 232,000.
Meanwhile suburbs between Penrith and Parramatta such as Tregear, Lethbridge Park, Whalan and Shelvey have median property prices that are below AUS$ 300,000. Other properties in the suburbs of Greater Sydney which encroach the Blue Mountains and often referred to as “the value suburbs” have three- bedroom houses that sell for AUS$ 185,000.
Sydney’s property markets will continue to rise. But with a bit of effort, ingenuity and the help of a reputable Buyer’s Agent you should be able to find bargain properties in Sydney.