Characteristics of Buyers in the current market
First home Buyers
First home Buyers are also taking their time to make a decision. When I speak with first home buyers on how long they have been looking for, the response is often 3-6 months and in some cases they have even changed their preferences as well. This could be in their choice of area, however, it is also what they are looking for in a property. If your property is well suited for a first home buyer, please make sure that your property has no cracks or damp issues. Presentation is the key.
Buyers who are downsizing
This type of buyer often starts to do their research 3-6 months before being ready to make a move. Often, they are in the process of getting their home ready for sale and they tend to stay in a familiar area.
Buyers who are upsizing
Lately, I have been dealing with a number of buyers who are looking at upsizing due to their kids getting older. The school catchment area is very important to this type of buyer and they tend to have a longer time frame. For instance, I am working with 1 buyer who has a time frame of up to 18 months and who wants to live in the Mt Lawley Senior High School catchment area. I am also dealing with another buyer who is looking for a property to move into in the next 12 months that is in the Churchlands Senior High School catchment area.
With the median rental return dropping in the past couple of years, it is no surprise that there are only a few investors looking these days. The exception is the type of investor who is looking for capital growth (land value) over a long period. The other exception is investors who are looking to buy a property for their kids. Typically, these buyers are from the country.
Investors who are looking at selling their investments with long leases in place may consider changing their target market. Listing the property for sale closer to the expiry of the lease agreement will make the property more appealing to owner occupiers.