Proptech Carpool – Specific Buying Areas in 2019 ft. Rich Harvey

May 22, 2019

Want the inside running on the specific areas to invest in for 2019? There is none better than Rich Harvey, CEO and Founder of Propertybuyer to point out those areas.

Check out what Rich has to say in the latest #proptechcarpool episode.

Like our videos? Don’t forget to subscribe to our Proptech Carpool series here.

Here’s the transcript of the video:

Opportunities in the market at the moment. You're obviously I guess boots on the ground every day.
Yeah know what's going on. Let's say I'm a buyer looking at coming into the market
what are the opportunities
you're seeing at the moment? So 2019
there's a lot of big opportunities. We've had Sydney, Melbourne come
down. Sydney around 12-13% Melbourne's come down
about 9 to 10 percent. The rate of decline in the Sydney market is slowing.
So I think we've probably got another 3 to 5 percent to fall.
I think the big falls have already happened. In Melbourne
I think it's about six months behind Sydney. I think Melbourne could drop another 7-8 percent.
So that's my prediction of where I think the market is going but in terms of opportunities,
it's a fantastic time for buyers to upsize
or upgrade if you're selling say $1-1.5 million into property you'll lose a bit on that sale,
but you'll more than make that up in buyer price.
So you if can afford to buy a $2 million or $2.5 million home
you know, there's substantial savings to be made. We just did one end of last year
down the northern beaches. Price was 2.95,
pretty close to 3 million we end up getting for just over 2.5.
So we saved the client over $400,000
in the transaction. So,
you know similarly on median priced properties around 700
you can generally get 5-7 percent discount
if you know what you're doing. However having said that good quality properties are still trading well.
A lot of people think that in this market they've got oodles of time to buy
and that just by waiting they'll get a cheaper price.
Even if it's a good quality property. But I say to them if you see the quality property today,
it's going to be two, three
or four other buyers that will also see that opportunity and they're going to jump on it.
So even in a softer market there is still competition for quality properties.
Yep. That's what we're seeing.
So I think the opportunities are also
for first home buyers because the markets come back quite a bit some suburbs that were just
out of reach of a lot of homebuyers in that lower price range.
In Sydney say 500 to 800 thousand dollar range.
It's come back by almost a hundred grand in some suburbs.
So now it's more affordable for those first home buyers.
So speaking to a lot of brokers, they're saying a lot of their
business is now with first home buyers.
Also, I think the opportunity
for first-time investors to get into the market. People with like a portfolio of
properties are finding it very difficult to refinance their portfolio
and very difficult to get additional loans.
But I think for if you're a first-time investor, you've got a good job the banks are still lend money.
They'll be checking your credit card statements,
how many Uber eats you're doing but at the end of the day,
you know, you still can't get a loan
and I think the message to get out there to potential investors is buy while the market's soft.
You know, I bought a number of properties during the GFC and they were fantastic.
When everyone else is running the other way,
I'm looking out, I'm being opportunistic.
And I think Trent, the next 3 to 6 months
is going to see the best buying opportunities
for a long time to come.
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