July 2016 Take Away Message
As a buyer
Some buyers will be looking for the bottom of the market before they make a move. However, we only know that we have reached the bottom of the market, when the market has already turned again and by then, you will have missed the boat already.
Therefore, if you are ready, 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.
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.
With no significant change in the rental yield forecast, I am also expecting more investors looking at offloading poor performing investments in the next 6 – 12 months, as the rental leases comes up for renewal.
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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 predicted to stay the same for the remaining part of 2016 and probably the best part of 2017.
When will the market improve?
That is the million dollar question. My own crystal ball tells me that any speedy recovery in 2016 is unlikely and we are not going to see any significant recovery until 2017 at best. Even then it will be a slow and steady recovery. If you want to wait until the market picks up again with double digit market growth, expect to be in for the long haul 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.
