With property price growth moderating in the majority of capital cities, there is currently fewer active buyers in the marketplace.
In fact, over the past few weeks we have successfully transacted on a significant number of properties for our clients, because of this reduced buyer activity.
Of course, less competition for property means market conditions are more beneficial for homebuyers and investors alike now than they were six months ago – and they’re certainly better compared to this time last year when there was a worrying level of real estate hysteria in play in many places.
However, softer market conditions means that buyers need to be even more diligent with their location and asset selection, because no one wants to overpay for a property when prices may flat-line for a while.
This is especially the case for expats overseas who may have been watching the market “back home” and waiting for the best time for them to purchase.
Indeed, we recently helped secure an investment-grade property in Western Sydney for a young expat couple who were keen to make the most of their borrowing power courtesy of their stellar overseas careers.
The couple are employed in the tech sector in San Francisco, which is the epicentre of the industry globally.
While there is no question they are making the most of the current career opportunities afforded to them over there, they remain committed to securing their financial futures, including leveraging their salaries into real estate while they are young.
They also understood that they were not experts in Sydney real estate by any stretch – especially since they have been living overseas for a while – so they contacted us to help find them the best investment property for their budget.
Because of the more balanced market conditions at present, we were able to consider a number of different areas that would not only fit with their budget, but also are primed for solid capital growth and yield results over the medium-term.
This time last year it would have been nearly impossible to purchase a four-bedroom house in desirable parts of Western Sydney for less than $1 million, but that is no longer the case – as long as know where and what to look for.
Plus, our strong agent networks in Western Sydney ensures we are often informed of properties before they have even hit the open market, especially when market conditions have turned and vendors are keen to secure a sale.
All of these elements meant that we were able to help this young couple purchase a house for $865,000 in a flood-free part of Sydney, which also is set to achieve $550 in weekly rent.
Not only has the couple now secured their first real estate investment, but they did so while living on the other side of the world.
This is because they understood the value and benefits of working with professionals, who are also local area experts and whose networks and expertise they could leverage to help them achieve their financial goals.
Plus, by taking advantage of the current softer market conditions, as well as their career success, they have made a strong start to their property investment journey – a journey that I’m sure that will continue to evolve in the years ahead, too.