Getting the right property at the right price is the key to a successful property buying.
So, what exactly is the right property, at the right price?
There is unfortunately, no right or wrong answers to this question. Everyone has a different reason/purpose when it comes to property buying.
It is often said that "any property can be sold, for the right price". The reverse, is however, not true. It is easy to buy the right property at the wrong price. Or you might get a wrong property for the right price. Or worse, you get a wrong property for the wrong price. The odds of getting it wrong is 3 to 1.
This is true in the current Melbourne property market, where there is a sense of panic buying, when property buyers fear they will miss out. At some auctions, we've come across many instances of people overpaying for properties. It is not surprising to see a similar property being sold for $100k-$200k less, just a couple of weeks ago. That's the classic Fear-Of-Missing-Out (FOMO) symptoms. Yes, the FOMO monster is back.
Over paying 10-20% seems to be the norm at auctions now. There is, of course, nothing wrong with that, if you think it is worth it. It simply means that you will have to wait longer before the property breaks-even, if they are intending to sell. But it is high risk, as such properties are not likely to weather any economic storms well, or you might not get a right price, when you sell.
Which is why, studies have shown that it usually takes a person 6 to 12 months to buy a property.
What should you do then?
We've compiled a property buying guide to help buyers get into the market. It is going to take some heartache, and lots of effort and wasted weekends to get the right property at the right price, but it is worth the journey.