Two aspects of the Crisis-Opportunity correlation are important to property buyers.
(1) How we choose to perceive shapes a version of reality around us.
A road ahead can be perceived as dangerous with the fear of the unknown. If somehow you gathered the courage to walk the path and a mosquito bites you, be prepared to be showered with “I told you so” from nay-Sayers who judge through their Hindsight Lenses. Anything can be perceived as crisis through the Hindsight Lenses. The usual conclusion is to avoid taking any risk, and do nothing.
Do nothing gets you nowhere.
Equip with Foresight Lens, you can see ahead where the road will lead you to, and find a path to navigate through the twists and turns of the journey. Foresight Lens shows you how to spot danger so you steer away from it, and to get yourself out of trouble and steep inclines with collective insights and persistence.
A journey of a thousand journey starts with a single footstep.
So, what kind of reality would you like for yourself?
(2) Crisis for Foreign Investor’s crisis, Opportunities for Australian.
Australian financial institutions have practically cut lending to foreign investors buying into Australian residential real estate market, since middle of 2016. This drastic cut have sharply reduced the number of foreign investors since 2016. Many of the foreign investors who have bought residential properties off-the-plan are now suffering, as they are unable to borrow from Australian banks to settle these properties.
One man’s loss is another’s gain.
This is good news for Australian buyers, especially for first-home-buyers in Sydney, Melbourne and Brisbane. Many Australian buyers have taken the advantage of the fire sales by foreign investors. The advantages of snapping up those properties are:
A. Soon-to-be settled or brand new properties
B. Property price are typically good value for money, at original price purchased years ago.
C. Some sellers offer incentives to buyers, such as a discounted purchased price or free blinds.
Make sure you still go through the checklist to cover your bases when buying a property, so you don’t fall into common traps:
a. Get a mortgage pre-approval – don’t buy anything unless you are financially ready to do so. I can’t stress enough on this point – missing this step can potentially cost you tens of thousands of dollars and lots of headaches!
b. Buy from an ethical and experienced real estate agent/investment consultant – as the process can be complex with potentially lots of paperwork to be done correctly, it is vitally important to buy from an ethical and experienced agent who is professional, transparent and can guide you through the process and beyond.
c. Buy into good locations with high demands – understand the owner-occupier appeal factors and common tenant profile. Whether you buy to live-in or to invest, a property is an asset and should be treated as so, to maxmise your return on buying this asset in the long run.
Contact us if you like to know more on these foreign investor “fire sale” opportunities, and how you can best prepare yourself to take advantage.