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How to buy property in any market: The 100 Rule

A group of houses that show you to be selective when you buy property

One sure fire strategy to ensure you get a good feel for how to buy property in a particular market and ultimately pay the fairest property prices Australia offers, is to follow the 100 Rule.

Before you buy property, you are encouraged to look at 100 properties that are comparable to the one you would like to buy. You need to do the leg work to inspect 100 properties, especially if you haven’t purchased in the area before. With this rule you could be dropped anywhere in the world and if you are given enough time to inspect 100 properties you can be assured that you will buy property at better than retail price. With Western Australia house prices the way they are, this could be particularly valuable in the Perth market. Even if you are working fulltime, you must dedicate the time to complete the 100 Rule.

The purchase of a house is far too significant to leave to chance. It is well known in property circles that the secret to a profit when it comes time to selling the property is based on how well you buy property in the beginning. Make a decision to block out a few hours every Saturday and aim to see five or ten properties to get a feel for Western Australia house prices. If you are consistent, you will see 100 properties in two to three months, making you an expert in that area and giving you a huge advantage over 98 per cent of the other people looking to buy property. You will be able to identify real bargains instantly and come from a stronger position when negotiating because you know another deal is just around the corner. This is how you can find the best property prices Australia has to offer.

When watching the housing market, consider the following:

The number of homes for sale in the area

• The number of days the homes have been on the market

• The price of a new home compared to established homes

• The price to rent property versus to buy property

• The number of homes that are in your price range

• The highest price you can pay when you buy property

• Interest rates in comparison to housing prices

• The time of year

Spring is often a good time to buy a home for several reasons:

• More people want to sell

• It is easier to make appointments to view homes

• Prices are usually competitive

• People are more willing to reduce their asking price when you buy property

• Income tax returns can help with a buyer’s budget

Spring is a good time to buy property as there will be plenty of people who could not sell their homes in winter months and who are trying to sell before the summer time. Homeowners that need to sell their homes before a certain time are more willing to reduce the price of their homes when you buy property. While Western Australia property prices can change, the idea of selling one’s home will not. Homeowners may choose to wait out the current housing market, but if they are eager to buy property or move to a new place, their wait will be short-lived. Negotiate with homeowners until a fair price can be reached. This is the same practice during a seller’s market as in a buyer’s market. You may have to play the bidding game for a week or two, but in the end, it is the person who needs to make the transaction happen the most that will end up compromising the most, and ultimately you will receive some of the stronger property prices Australia offers.

If you would like to discuss the topic in further detail, one of our Property Investment Specialists will be more than happy to speak with you. Contact Investor Assist on (08) 9200 7200 or email info@investorassist.com.au at a time that’s convenient for you.

Want to get started on your investment property journey? Download the Assist Kit to get started.

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