Melanie Dennis – Buyers Advocate
Firstly, purchasing property at the right price, not necessarily the cheapest price, is very important. Premium investment properties come with fierce competition from other investors. Never is it more important to ensure you pay the right price and not fall into the trap of paying over the odds because other potential purchasers are being cavalier with their own funds. It is paramount to know in advance the price point you intend to stop at when bidding or negotiating on a property.
You will no doubt miss out on some properties on a few occasions. However, when the property exceeds your limit, you must concede it isn’t justifiable from an investment perspective. Another property will invariably come along. Patience is essential in securing the best investment. In the whole scheme of things, a few months between the purchase date isn’t going to make much of a difference in a long term. Acting with haste will only cause property errors.
On the flip side, waiting two years and being too fussy isn’t going to do you any favours either. The market may rise, and your strategy and pricing will have to change. The secret is to understand the value of a property and pay a fair market price. When you buy a good property, you should expect a certain level of competition — and remember, competition is a positive thing. You can almost guarantee a property you compete for at purchase will be competing for when it’s time for you to sell. Whereas a property purchased for a bargain price will often sell for a bargain price down the track. There is no magical illusion in property, you generally get what you pay for.
Looking at comparable sales is the best way to determine a value of a property you’re looking to purchase. You need to do your research and understand what comparable properties are selling for, attend auctions, read the results in the weekend papers, and talk to agents about other properties they’ve sold in the area. Once a price has been determined to be fair market value, you are now equipped to negotiate and pay the right price.
I hope this helps you. Call me on 0416 218 003 if you need any help.
