What was your new year’s resolution last year? Have you thought of one this year yet, or, perhaps you’ve already given it up?
If there’s one thing you can do, it’s make a property resolution and stick to it. Take a look at the key areas that investors, buyers, and renters should focus on in 2017.
What renters should focus on:
1) How sweet is the deal?
If you’ve been renting your house or apartment for awhile now, be sure to check that you’re getting the best deal possible. Take a look at prices in your local area and be prepared to negotiate with your landlord if necessary.
2) Be an A+ tenant
When you’re in rented accommodation, treat the property the same as you would if you owned it. If your landlord can see that you’re a reliable tenant, they’ll be more flexible with the rules – they might allow you to have pets for example or even drop the rent voluntarily.
3) Check out cheaper rent in surrounding suburbs
More often than not, the suburbs surrounding the area you’re living in will have places with cheaper rent. Think about it – are you willing to pay a few hundred extra dollars a month for that slight added convenience of location?
What buyers should focus on:
1) Be sure of your financial situation
With the rise in lender scrutiny, it’s harder than ever before to get a bank loan. Lenders are now far more discerning about who they lend money to, as well as how much they’re willing to offer. Off-the-plan and apartment property purchases now fall under the scrutiny of banks.
2) Which way is the market heading?
Although there might be talk of demand and rising prices, you should make sure you actually look at which way the market is heading. Although optimism is good, it’s not smart to assume that property prices will fall or remain the same when the same market-driving forces still exist.
3) What is the property’s true value?
Take a close look at the area surrounding the property you’re looking to purchase – what other prices are there for similar homes?
In 2017, you should be prepared to do your research on what properties in your target neighbourhood typically sell for. This will also help you decide where to place your offer, as well a how you should prepare if the property is going to auction.
What investors should focus on:
1) Look to the future, not to the past
Despite what might have happened in 2016, you shouldn’t look backwards – always focus your sights on the future.
Although it’s important to learn from mistakes, you should also take into account present data and future trend predictions.
2) Be sensible about your cash flow
Considering the sheer number of rental property projects that have been commissioned in Sydney and Melbourne, investors should be wary of the possibility that rents could level out in these cities.
If you’re banking on the rising rents in order to make returns, you might need to take another look at your numbers.
3) Set your sights to the countryside
Regional towns that are riding on good core infrastructure and broad employment opportunities often have a greater variety of affordable housing than cities. If you can find a property close to a hospital or university, you’ll have a good chance of making strong rental returns.
For more information and advice on Real Estate, contact your local Ruralco Property office, they will be only too happy to assist.