Tips that defy the traditional property rules…
Even though there are signs that the Sydney property market is cooling the auction clearance rates still do suggest that we are in a strong market. Hot markets actually smoke out great properties as they instigate vendors to sell.
Traditionally the advice would be not to buy a property on the basis of breaking the traditional rules. However I think you can use these issues to your advantage. The key though is making sure you can address or fix the issues in the property’s ownership to add value.
Identify the context of the suburb and what is the norm, then, buy opposing the norm. So, for instance in Rozelle in Sydney’s Inner West weatherboard is quite common and buyers compete for it. However, in Surry Hills there are hardly any weatherboard houses so buyers traditionally don’t want to buy them. Look at buying something that you can make attractive in other ways.
Buy a property that may not have a sunny aspect at the rear. Make sure when you look at a property you check the aspect on your compass app because quite often the floor plans are wrong . Buy something that can be brightened or made warmer. You can add heating, paint the property white, open up a wall, put a skylight or amazing lighting in.
For some people parking can be a deal breaker. Really take into consideration key things such as how easy it is to park on a street. Weigh up the proportions of the home, aspect and value. You may find that you find a far superior property without parking in a quieter street and a better suburb. The gold is when you can add a car space. Look at neighbouring properties to see if they have added parking and speak to the local council.
- Wrong suburb.
Identify the suburbs that have popped in price then look at the surrounding areas. A few years ago I saw this with Newtown. Prices had exploded and nobody would touch the surrounding areas such as St Peters and Tempe, now these suburbs are highly sought after.
- Not enough bedrooms.
Look for ways in a property to add a bedroom. Recently I bought a one bedroom in Paddington it was 82sqm – so the size of a 2 bedroom. We bought it for $767,000 the renovation will cost around $70,000. One 3 floors up just sold for $1,195,000 – which is the same size 2 bedroom version. Quite a hefty way to add value.
Buy a property with no storage. Storage space is a real selling point when it comes to today’s buyer. Look at a house or an apartment that has minimal storage and then add storage to it. Maybe this is under the stairs, re-doing the kitchen, putting a shed in or shelving somewhere.
Bending some of these rules may get you into a suburb you like better and fixing the issues in ownership will help you sell better. Always do your research though and don’t buy anything that is unfixable.