Take Away Message for May 2016
As a buyer
Now is the time to go property shopping but it is important to do your research and be patient. Properties that have not sold in the first 6 weeks should be the focus as the seller is more likely to accept a lower offer.
Properties with a medium length lease are also worth considering if you can wait to move in as you will face less competition.
As a Landlord
Although there are some signs that the rental market is stabilising, tenants are still spoilt for choice. It is important to listen to your property manager when lease renewal is coming up as risking a vacating tenant may not be worth it. Do what you can to look after the tenant, and approve repair requests promptly and to a good standard.
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As a seller
If you are thinking of selling your property there is no point in waiting for the market to improve. The property market is likely to stay the same for 2016.
According to national valuer, Herron Todd White, Perth is yet to reach the bottom of the market, so prices are expected to fall even further before the market improves.
When will the market improve?
That is the million dollar question. My own crystal ball tells me that the market at best will bottom out in late 2016 and we are not going to see any significant recovery until 2017. If you want to wait until the market picks up again with double digit market growth, expect to be in for the long as you will have to wait for a long time.
As an investor looking to sell your property, it is worth considering selling when the lease is near the end, as there will be more owner occupiers than investors looking.
Properties with a long lease are becoming trickier, particularly if you own a lease with less than 45-50sqm. There is still demand for family homes and entry level homes (first home buyers).
It is therefore important that you keep in mind what type of buyer is going to make an offer on your property before going to market.
Readers should always seek their own independent advice prior to making any decisions regarding property or finances.