As competition heats up in the property market, first home buyers can use some clever strategies to out-manoeuvre investors.
See the potential
When you’re buying a first home it can seem like the cards are stacked in investors’ favour. But there’s one thing you have that landlords don’t – time. Investors want an immediate rent return and that’s not always possible with a doer-upper. Looking for homes in need of a makeover can put you one step ahead of investors – just be sure you can afford any essential work needed to make the place liveable.
Bolt ahead in negotiations
Having loan pre-approval lets you move at the speed of Usain Bolt when you find a property you like. If you’ve got finance in place you’re a sure thing for vendors and that means any reasonable offer you make can look very tempting.
Tenants aren’t fussed about living in an area with ‘growth potential’. They want good local amenities and they want them now. If you’re prepared to consider suburbs that aren’t quite what you wanted but have the potential to forge ahead in the future, you could sneak in ahead of investors. And remember, your first home is a stepping stone. You can trade up to something better further down the track.
Don’t wait. Act.
If you’re restricting your property search to homes listed on real estate websites, chances are you’re missing out on some of the best buys. Vendors often want their homes sold quickly with a minimum of fuss, so follow the lead of buyers’ agents and introduce yourself to local real estate agents, give them your details and let them know you want to be the first to hear about any new listings in your price range. Stay in touch to let them know if you’re still looking.
One other thing – don’t give up. The right place at the right price does exist, and with persistence you’ll find it.