How valuable is your time? Do you have time to inspect properties after work or at the weekend? Finding the right property and conducting all the research can take weeks and even months.
When you buy a property, how do you know the right price to pay and whether the property will perform well over time? With so much at stake when buying a property, the risk of losing large sums of money is significant.
In Sydney, property prices have in general increased over the past 10 years. Some properties have more than doubled in value in that time. Reports from RP Data in 2010 indicate that the 10 year annual value growth for houses is 6.6% and for units it is 6%.
Despite this, not all properties have increased in value over the past 10 years and some property owners have done much worse than others.
Take a look at these examples:
4 August 2006: SOLD: $935,000
11 March 2011: SOLD: $855,000
A loss of $80,000! When you include the cost of stamp duty and buying and selling expenses, the total loss is well in excess of $100,000
57/52-54 McEvoy Street, Waterloo
This is a small one bedroom unit in a modern apartment building in Waterloo. The recent sales history is as follows:
9 January 2001: SOLD: $415,000
27 June 2006: SOLD: $400,000
9 November 2009: SOLD: $350,000
See how the property has fallen by $65,000! That’s equivalent to a drop in value of 15.66% in just under 9 years.
2 Nulla Nulla Street, Turramurra
This is a freestanding house with 5 bedrooms, three bathrooms, a double lock up garage, a swimming pool and a tennis court. The recent sales history is as follows:
13 November 2001: SOLD: $3.275m
5 April 2012: SOLD: $2.7m
A loss of $575,000! Don’t forget to add the cost of stamp duty and buying and selling expenses!
Use a Specialist Sydney Buyers Agent
So if you’re concerned about wasting time and money by buying the wrong property, call us today on 02 9568 6330.