Get ahead. Know your competition
The Sydney property market is ultra competitive. But who are you likely to be competing against?
Challenges: Looking to buy a smaller property with easy access closer to the City.
Strengths: Cashed up from the sale of their large family home, they are likely to be in a stronger financial position than most of their competition.
Weaknesses: These people are prone to making hasty real estate decisions without seeking advice from friends and family. They think they know best but can make real estate mistakes.
Challenges: Looking for suitable low maintenance properties with strong rental returns and capital growth.
Strengths: Little or no emotional connection to the property.
Weaknesses: Constrained by a budget and a maximum financial threshold above which the investment purchase is no longer viable.
Challenges: Trying to buy property from a distance. If they do not have Australian citizenship or Permanent Residency, there are restrictions on the types of properties they can buy.
Strengths: The weakening Australian dollar is helping these buyers.
Weaknesses: For various reasons, they tend to be more interested in certain parts of Sydney. The threat from this group is most likely to be over hyped in the media.
Challenges: This group generally contains growing families looking for larger properties with more space. The proximity of certain schools is becoming increasingly important for these buyers.
Strengths: Likely to be cashed up from the sale or impending sale of their existing property.
Weaknesses: Between full time work and raising children, the lack of time to look for properties and do the research is an issue for these buyers.
Challenges: Finding suitable sites which stack up taking into consideration purchase costs, holding costs, development costs and resale potential.
Strengths: Other than first time developers or speculators, they are likely to be extremely savvy and will keep their cards close to their chests.
Weaknesses: Like investors, they will not pay any more than their financial limit for the property.
First Home Buyers
Strengths: Amount of time to pay off the loan.
Weaknesses: Most likely to be beaten by any of the competition above. Too keen to listen to well meaning but often confusing advice from friends and family leading to delay and procrastination. In the Sydney property market, delay tends to lead to paying more in the long run.
For a better way to minimise your weaknesses and beat your competition, consider using a buyer's agent.
Call me today on 0405 134 645.