Hi everyone. i have had a good run with cheap rent for the last 5 years or so. The owner wants to sell so i'm moving out. I am actually going to move home for a while.
The bank will lend me 300 000. I need to save up another 5 grand to get the required deposit. Living at home that will take me 2.5 months.
Most of the information i read tends to lean towards prices falling by the end of the year
Should i hold off and keep saving for a while longer before buying ?
The type of property i am interested in buying is currently around the 340 grand mark. I basically just want a nice tidy 2 bedroom villa in a decentish suburb.
Another related question, how much below market price can you generally offer without looking like a cheapskate ?
if a property is advertised at 300000, is 280000 a fair starting offer ?
All replies really appreciated
They do say it will keep falling this year, maybe 5%. So it might be good to buy end of the year… however the negative forecasts may also mean there are less buyers out there – so may be some bargains around! Personally I would start looking once you have the deposit, look at a lot of places and get a good idea of value and if a bargain comes up you'll be ready.
Don't worry about looking like a cheapskate, agents have heard cheeky offers all before and all the best investors haggle! It's not about the starting price (asking price), but more about how it compares with other properties on the market and how motivated they are to sell. The "price" is only set when the sale occurs. Look out for signs of a highly motivated seller (needs to sell as has bought elsewhere, is in financial strife, has had property for sale for ages and wants to get out, or is getting divorced!) as this can be a sign you can start negotiating at a lower price, especially if you know your finances are in order for a straightforward sale.
Thanks Sally
I will have the advantage of having a preapproval and not having to sell anything
Do not forget to factor in possible stamp duty and mortgage insurance costs
The best advice you can ever get is to wait till the end of the year or even longer if you want (middle of next year) there is already another interest rate rise coming and things in perth are getting very bad ( Properties advertised at $100k less than what they were valued and then not getting any offers at all) I saw one in Coogee that was advertised for 1.2m (3 story with views) and now its 870k all offers considered. If you get pre approval from your bank so you can arrange a quick settlement. You should be looking at properties around the $380,000+ range and offering the agent $300,000 and saying thats all I have I simply have no more. Your offer is more than likely going to be the only offer that the agent has received or ever will receive…….DO not listen to anything the agent says…..just say your offering $300,000 and not a cent more with a quick settlement and trust me you will pick up a property advertised around the 400k mark.
The best advice you can ever get is to wait till the end of the year or even longer if you want (middle of next year) there is already another interest rate rise coming and things in perth are getting very bad ( Properties advertised at $100k less than what they were valued and then not getting any offers at all) I saw one in Coogee that was advertised for 1.2m (3 story with views) and now its 870k all offers considered. If you get pre approval from your bank so you can arrange a quick settlement. You should be looking at properties around the $380,000+ range and offering the agent $300,000 and saying thats all I have I simply have no more. Your offer is more than likely going to be the only offer that the agent has received or ever will receive…….DO not listen to anything the agent says…..just say your offering $300,000 and not a cent more with a quick settlement and trust me you will pick up a property advertised around the 400k mark.
Jaime, thanks for the advice, as long as things get somewhat cheaper, i will be happy
I do agree that properties are seriously overpriced at the moment in Perth
You must be logged in to reply to this topic. If you don't have an account, you can register here.
