Unsure whether now is the right time to buy?
There’s many mixed messages in the media and in our social circles about what’s happening to the property market and whether to buy now or wait. So should you buy now or wait?
Wait
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Makes sense as consumer sentiment is at an all-time low
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Very hard to admit to your friends and colleagues you’ve bought as they’re bound to question your logic and intelligence
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Property is bound to drop further isn’t it?
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The election is coming up which is the perfect reason to sit on the fence and do nothing
Buy now
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The banking commission is out of the way
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The election is coming and if they do grandfather any changes then best to get in now before it causes a rush
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You’re investing for 20+ years and you’ll never be able to pick the bottom so invest when it’s a buyers market
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That’s what contrarians do (“Be fearful when others are greedy and greedy when others are fearful.” Warren Buffett)
We’re definitely seeing a range of sales prices in the market – some that are selling short, some on target and some that are selling over the odds. So we’ve got more opportunities for clients that want to be contrarian and jump off the fence.
Therefore, I thought I’d send you a little info regarding a few Coogee properties I’ve either purchased or followed through to sale as I believe there are some solid opportunities out there.
Overall we believe Alexander St was the superior property of the three as it had the location, size, condition and aspect (North facing) that will always be in high demand, whereas the others didn’t. Alexander was a much better property than Brook St and at $15k less.
1/22 Alexander St, Coogee NSW 2034 – bought on valuation
https://www.realestate.com.au/sold/property-apartment-nsw-coogee-130320830
We purchased for $1.12m = which is in valuation range and well under vendors expectations of $1.2m
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Large and beautifully renovated 2 bedroom apt with huge garage
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92 sqm unit + 24sqm garage
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Wrap around balcony off lounge
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Small block of 9 units
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500m to beach
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Rental circa $800-$825pw = 3.77% yield
- Actually rented March 2019: $860
2/126 Brook St, Coogee NSW 2034 – could have bought before, saving $35k
https://www.domain.com.au/2-126-brook-street-coogee-nsw-2034-2014947150
We were offered this prior to it being marketed for $1.1m which is $35k less than it sold at auction for $1.135m. In neat condition throughout
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69 sqm unit + standard garage + space in front
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Small block of 9 units
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350m to beach
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Rental circa $700-$725pw = 3.26% yield
5/19-21 Byron St, Coogee NSW 2034 – would have been a great buy
https://www.realestate.com.au/sold/property-apartment-nsw-coogee-130261242
This one sold for $975k which we believe would be a great buy as they were looking for $1.1m+. Valuation estimate would have been $1.05m - $1.1m
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Really well renovated throughout with balcony off lounge
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90 sqm unit + 20sqm garage
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Further back from the beach than Byron & Alexander St ( by a couple of mins so not a huge con)
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650m to beach
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Rental circa $700-$750pw = 3.87% yield
I believe the Byron St sale represented fantastic buying at that level and goes to show that the market is still a little uncertain and prices remain a little inconsistent - which also indicates there are some great deals to be had. We didn’t buy it as we had already bought Alexander and the remaining clients had budgets either way above or below that level, so that could have been an opportunity for you!
Good properties always sell well but sometimes there’s a 1 in 20 example of where it doesn’t work out.
As a contrast we were looking at a block of units for one of our HNW (High Net Worth) investors and the result was way over what we would have wanted to pay
1-4/41 Sir Thomas Mitchell Rd, Bondi Beach NSW 2026
https://www.realestate.com.au/sold/property-unitblock-nsw-bondi+beach-127546058
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Sold at auction for $5.8m
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4 semi style apartments with 2 lock up garages + carport + space
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350m to the beach
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Rent $2,520/wk = 2.23% yield
We thought they were worth $1.1m - $1.15m each in their current original condition so therefore $4.6m max and maybe $4.8 - $5m with the added premium of owning an entire block.
Also, last weekend we went to auction on a very unique converted warehouse, that one of our clients wanted as a home. It sold for $4.18m and created a lot of press given it’s appeal, the original owners and final selling price.
22 Nelson St, Annandale NSW 2038
https://www.realestate.com.au/sold/property-warehouse-nsw-annandale-130489378
We walked away once it got to our buy price based on the independent valuation. It’s always better to be the underbidder than the overbidder. Again, this is another example of an attractive property selling over the odds, even in a supposedly down market.
We think we have the strictest buying criteria of any buyers agent in the country as we’ll only buy within the range of a conservative independent valuation. You’ll always be assured you’re buying at the right price, no matter what the market.
We also get to see most of the deals before they come to market. It’s hard for the average buyer to compete against this.
So if you are looking at the market now and seeing potential for opportunity like I am, then let’s talk.
Even if you are unsure, we have an incredible team that can discuss your current circumstances and figure out whether property is a good fit for you right now, or perhaps help you position so it is a good fit some time in the near future.
If you would like to talk more about your property investment strategy, click the link on this page to contact us now, or give us a call on Sydney (02) 9994 8944.
