As Christmas holidays approach, the weather is getting hotter in Australia, but for the real estate market, the opposite is true. At this time of year, the housing market is about to cool down, and 2018 of the property market, It`s cooler than ever before.
A few days ago, the Australian Financial Review published an article, another thrilling headline-the Sydney property market has fallen 9.5% from its peak. The article is even more relentless to mention that the decline may be the biggest wave in the history of Sydney`s property market.
In the past, our article is more to teach everyone how to make money in the housing market, according to the present situation in the housing market, it seems to have to change taste, more talk about how to stop the loss.
The reason why I think of this topic is that a lot of friends have come to me recently, saying that the house that I bought two years ago is going to close, but now the property market has become this kind of bird, do not know whether to continue to sell their own real estate.
You know, abandoning a 10% down payment is a tough choice for many people. After all, it means an investment of at least a few tens of thousands of Australian dollars, but even so, you can`t get rid of that idea in the minds of individual investors. Can be seen today`s property market "tragic".
According to my observation, there are only the following reasons why investors have the idea of not closing the house:
1. Personal financial situation has changed, unable to deal with the real estate
2. Unable to obtain a loan
3. A (serious) undervaluation of the purchase of a house
4. A decline in the purchase of regional housing markets
So, let`s analyze it one by one today:
1. Personal financial situation has changed, unable to deal with the real estate
Buying flats, especially high-rise apartment buyers with a long construction cycle, is the most likely to happen. Because the construction period is too long, it is inevitable that the buyer`s personal situation will change.
For example, some domestic buyers look at the current Australian housing market downturn, consider it better to deal here real estate money, for children in the country to buy school district housing. For such a buyer, as long as the heart is ready to give up 10%, that is your own decision, there is no reproach.
However, more people, in fact, their own mentality of change, is a different view of the property market.
For buyers who have the ability to sell properties but are struggling to do so, I suggest looking for professional professionals to make a comprehensive analysis of the projects they invest in, and then make a judgment.
Because there are so many "junk-grade investment houses" in Australia, and Chinese people can say that they have bought a considerable part of them, but there are also some properties that are not bad in nature and are worth holding in the long run, so we should learn to screen them out.
2. Unable to obtain a loan
The tightening of banks` money is undoubtedly the main cause of the current housing market situation, which has also caused many buyers to encounter difficulties in lending, causing many to lose 10 percent of their money.
Australian House author Sydney God of Wealth and I said in an exchange, he found that many of the loan problem buyers, the biggest negligence is in fact "their own attention is not enough", to put it in the open, it is not a matter of responsibility.
On the contrary, for buyers who really take the house delivery as a major task, they will start preparing at least half a year in advance, seek advice from the bank and broker, submit information in a very timely manner, communicate with the loan manager in a timely manner, and finally, Basically can find the right way to own financing.
After all, even overseas buyers who don`t lend to the big four now have plenty of fund products to choose from, and interest rates have fallen sharply compared with the first wave of lending two years ago.
So, if you can`t get a loan as a reason you can`t get a deal, I think it`s very likely that you don`t want to sell it in your subconscious mind.
3. A (serious) undervaluation of the purchase of a house
There are probably two reasons why house valuations are undervalued: the first is that you do buy a bad house, and the other is the impact of regional market performance on the valuation.
You may have heard of the blacklist of bank loans, which is a policy of refusing to lend to individual areas where there is too much supply. But do you know that within some financial institutions, there is a blacklist that belongs to developers.
In Sydney, there are some Middle East developers whose names are regular on these blacklists. As soon as you hear the name of the developer, no matter where the house is built, it may have a negative impact on the valuation results and, more seriously, financial institutions will refuse to lend to buyers of the project.
If you have a habit of looking at Review, the developer on Google, some buyers` messages can be said to be blood lessons, very much you are worth reading before buying a house, here are a few for everyone to enjoy:
Now on the market, if you buy this kind of scum developer`s house, then no deal, will be your best policy.
4. Regional housing market declines
There are times, developers are good, the quality of the project is good, even View is also a waterscape, but unfortunately location is not right, the good ahead of the good are all gone.
If, unfortunately, such an area is bought and the valuation is substantially undervalued, I suggest that buyers with limited funds do not hesitate to give up 10% directly as the best result.
Hamilton in Brisbane, for example, is such a strange area. Geographically, between CBD and the airport`s two major job centers, the natural environment is also more beautiful, waterview rooms everywhere.
From a self-contained point of view, there may be a lot of choices here, but if you buy an investment house here, it`s a completely different picture.
This is because Hamilton is not bad geographically and environmentally, but the "unlimited" supply of land has left house prices in the doldrums for a long time.
I took a look at all the apartment transactions in the Hamilton area over the past two months (October-November) in RP Data and compiled them into the following tables:
As can be seen from the table, with the exception of the third row, the 2-apartment, which has increased by 25% over the past 14 years, all the other properties have fallen in terms of the relatively earliest available transaction records. The first of these apartments in Hercules Street changed hands over the course of 14 years, but the price of the deal fell again and again.
Instead of the high-rise apartments that most buyers have bought in recent years, the only apartment with a rise in price is an old apartment building built in the 1970s with just 11 units, the vast majority of which are self-occupants. And has an absolute line of water. The rest of the transactions are all from high-density apartments built over the past 10 years.
The 61 hillside crescent apartment, which was sold last month, has a real view of the room and balcony
In summary, we talked about the current situation of the real estate market, will deal with the buyers of the four difficulties and analysis. In general, the level of Australian property is uneven, and in the case of limited investor funds, you need to:
Learn to rationalize their portfolio to clean up their portfolio of properties that take up the ability to lend and cannot see potential value-added properties;
At the same time, it is the key to rational layout of all of us to distinguish between the high-quality housing sources that are blinded by the low and low market, and the "garbage houses" that are made from the roots.
