August 08, 2022

#165: The extra mile buyers should go when shortlisting a property - Inspecting like an expert & how to spot red flags, all you can discover

49 minutes

Got a question for the trio? - https://zfrmz.com/uLtjhyBskV96PY6eJfaI https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode Dave, Cate and Pete take you through: Market update 1. How do rents stack up against inflation Peter shares his research on rental returns over the last 10 years, which increased nationally by 11% for all dwellings. Compared with inflation, which increased by 25.6%, it's a good reminder of the benefits of capital growth focused investment properties. Check out our show notes for the growth rates of rents for each capital city. 2. Closing in on the neutral cash rate Whilst opinions on where the neutral cash rate sits are many and varied, Cate reminds our listeners that we must be getting pretty close. Although economists don't have a crystal ball, no one is expecting the cash rate to reach 5% and the RBA is trying to reach the point of equilibrium quickly. Once the RBA slows down on rate movements, it's like that buyers and particularly those who have put their purchasing plans on hold to wait out the uncertainty, will jump back into the fray. Nothing encourages opportunistic buyers like a slow-down in rate increases. 3. Economists revise down their predictions on the neutral cash rate David shares the early signs of economic inflection which could suggest that the neutral cash rate is may likely eventuate at 2-2.5%. As little as two months ago, money markets were predicting the cash rate would reach as high as 4.5%, however most bank economists now think that it will rise to 3%, with CBA being the most conservative at 2.6%. Money markets have also spiked in July by 5-6%, which brings positive news. Whilst the US is in a technical recession, an argument could be made that they are not actually in a recession due to the very low unemployment rate and other factors. It is also important to note that our technical definition of what constitutes a recession varies from that of the US. The extra mile buyers should go when shortlisting a property 1. Listener Question: "A glass half full question ... as we transition into a Buyer's market, what steps can investors take to be positioned to take advantage of an opportunity that might present itself" The trio start the episode by answering a question from a podcast listener and share their tips on how to get purchase ready, to strike when the iron is hot! Property is a long game and we do need to sometimes remind ourselves of this. 2. What are some of the things we can check online before we even book an inspection? The trio share their hot tips on how to make the most of your internet searches when doing your online research. 3. What things should you be looking out for immediately when inspecting in person? Cate shares with our listeners what to look out for when you visit an open house. Take note, listeners should use more than just their eyes when inspecting the dwelling! Pete shares the aspects of the land to keep an eye out for and why you should stick around for the whole inspection. 4. How to assess a 'workable' floorplan vs a complete overhaul floorplan An illogical floorplan can be a huge pain, not to mention the financial commitment if you want to make adjustments. The trio discuss how to assess the floorplan, which could save you thousands on a planned renovation. However, the floorplan is not everything. For listeners who want to get into a particular location, especially first-time buyers, dealing with a less than ideal floorplan or a more run-down house could be the trade off to get into the best location. 5...

...more