Property Market Update 2023
According to CoreLogic, in March, for the first time after the rate hikes commenced, Sydney, Melbourne, and Perth are all recording a lift in values, with Sydney (+0.8%), Melbourne (+0.2%), and Perth (+0.1%). Brisbane remains unchanged over the past four weeks, and Adelaide is now the weakest of the five largest capitals, with values down by -0.4%.
But why are property values going up when the RBA keeps increasing the cash rate? The main reason for this value increase is a stock shortage. CoreLogic reports capital city listings over the past four weeks were 20% below the previous five-year average for this time of the year.
This lack of supply increases competition between buyers and makes it very hard for home buyers and investors to secure their ideal property in the shortest time.
And this creates frustration!
Committing yourself to buy a property is almost like taking on a second full-time job. Sacrificing all your spare time to look for your new property can affect not only your social life and relationships but also your mental health. And the problem quickly starts from here:
Many property buyers who miss out on a property they really wanted buy the very next thing they can as an act of desperation without having proper due diligence on the suburb or property. So they basically buy a property that doesn’t really suit their needs out of pure desperation.
According to a survey by realestate.com.au, the average time spent actively searching for a property before making a purchase is 8.6 months.
However, with clarity and solid selection and due diligence criteria, this lengthy process is not necessary.
Buyers can often waste precious time searching for properties in suburbs that are outside their budget or by negotiating poorly, which can result in missing out on desired properties.
In addition, the inability to accurately determine the true value of a property can result in overpaying or offering too low. This, in turn, can potentially lead to losing the property to competition and restarting the purchasing process with even more frustration.
As we all know, time is money, and the cost of being an average property investor or home buyer can be significant. In a rising market, an 8.6-month delay can result in losing tens of thousands of dollars in opportunity cost.
For instance, let’s say you’re looking to buy a $1 million property in a suburb with 10% annual capital growth.
If you delay your purchase by 8.6 months, the property’s price could increase by approximately $72,000.
That’s a significant amount of money that could have been saved by acting quickly and using a streamlined process with professional help.
By becoming a sophisticated buyer and outperforming other buyers, you can create wealth much quicker and with less risk. This means taking advantage of the current market conditions and making informed decisions based on accurate information, expert analysis, and a comprehensive understanding of the property market.
On a side note, our proven streamlined process enables us to achieve an average property purchase time of only 1.4 months, resulting in wealth creation or savings of approximately $60k for our clients in the example above, in the first year alone.
So why spend 8.6 months on average and potentially lose $60k when you can regain your weekends, save money, and create wealth while enjoying your life and spending time with your loved ones?
Don’t let this challenging time get in the way of achieving your goals. Take advantage of our FREE 30-minute consultation session to safeguard your investment and avoid any future troubles.
