With the Melbourne housing market continuing to cool, upgraders are in a position to exploit opportunities and grab themselves good properties for the long term.
RiskWise Property Research
CEO Doron Peleg said there were a number of property markets that were suffering weakness and would provide potential opportunities for buyers looking for their forever home.
He identified houses in popular areas such as Melbourne’s West, Inner East and Inner South, as locations suffering weakness and therefore places where upgraders could take advantage of well-priced housing with long-term capital growth and demand.
“Owner-occupiers who are good borrowers with a stable income and good credit history looking to move due to lifestyle, schools, location or for whatever reason, really are in a good position,” Mr Peleg said.
“All they need is a good understanding of the market, are prepared to negotiate hard, are thinking about the long term and are prepared to consult an expert.
“It’s true there has been significant reduction in activity but there are still quite a few transactions in the market, in fact, in the past week alone, there were 1,283 auctions in Greater Melbourne.
“Upgraders can achieve bigger properties in better locations for a relatively reasonable price as this is a very strong buyers’ market. However, to minimise the risk they need to sell before they buy to ensure they get the right price, particularly if they only own a unit.”
Mr Peleg said upgraders, who were looking for their forever homes, had a completely different strategy and risk profile from investors who tried to maximise their returns and minimise their risks.
He said CoreLogic figures showed the housing market had cooled with dwelling price growth going from 10.1 per cent in the 12 months to 30 November, 2017, to -5.8 per cent in the 12 months to 30 November, 2018. The auction clearance rates decreased from 69 per cent in November 2017 to 43.7 per cent to November 2018.
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