The Property Trio (formerly The Property Planner, Buyer and Professor)

#98: Cooling off period, finance approval, negotiating terms and auction quote ranges - Preparing for auction #2


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https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#78 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. Stretching budgets and changing sentiments The gap between what a buyer can actually spend vs what they planned to spend is getting closer as we see buyers revise up their limits to compete in this market. We made a prediction that APRA would step in with macro prudential measures late this year or next, now every man and his dog is reporting on the potential for APRA intervention. Although APRA Chair Wayne Byres recently stated that APRA has no mandate to target the level of housing prices - they are simply a risk factor, not a goal. 2. Tips to increase your borrowing power The Property Planner and Buyer share the insider scoop on how you can increase your borrowing power to maximise your buying power. 3. Banks and economists revise UP their expectations for 2021 NAB is the latest bank to jump on board and predict 15% national price rises for 2021. This follows ANZ upping their predictions in late March to 17% growth this year. Recent reports tip Sydney and Perth to exhibit 19% capital growth each, 18% for Hobart, 16% for Melbourne and Brisbane and 13% for Adelaide. Preparing for auction #2 1. Can you have a 'subject to' clause at auction? A common misconception is that 'subject to' clauses cannot be introduced in an auction. The Property Buyer explains that although very rare, everything is negotiable. 2. Cooling off periods - what are they and when do they apply? A cooling off period is a purchaser's right to terminate the contract without needing to validate their decision. The cooling off periods and penalties vary State by State, so it's important to know your legislative rights and any penalties that may follow. 3. Boardroom auctions vs public auctions The Property Buyer takes you through the key differences between boardroom auctions and publicly scheduled auctions that you need to know about to put your best foot forward. 4. Getting yourself finance ready With turn-around times improving, it's possible to be finance ready if you plan to go to auction in three weeks' time. However, it's incredibly important to move with speed and have your finance arranged as early as possible. The Property Planner shares the critical need to be able to juggle multiple balls at the same time, rather than focusing on one thing at a time. 5. What prep do you need to do to get ready? If you want any variations to the contract or deposit terms, these need to be arranged before the big day. Doing your market research, planning and setting your bidding price point and strategy is critical and likely to take more than an afternoon. Ensure that you have not left this to the last minute! 6. What is an auction quote range and why you shouldn't rely on it In a moving market, an auction quote range at best can be wrong and unreliable, at worst, it's misleading. In determining a quote range, the agent is permitted to cover historical sales prices, (in Victoria for example; over the last 6 months), which could be 15-20% lower than the current market. The best thing is to do your own research and collect your own comparable sales. 7. Where to stand at auction The Property Buyer shares with you the key vantage points to give yourself the edge over the competition. 8. The differences between auction campaigns and private sale campaigns The Property...
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The Property Trio (formerly The Property Planner, Buyer and Professor)By Cate Bakos, David Johnston and Mike Mortlock

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