Data from April last year showed that housing prices surged up to 2.8% compared to the following year. This record-high raise was last seen in 1988. And usually, this phenomenon is met by what the young ones call FOMO or the fear of missing out.
Wanting to ride the wave, investors make very quick decisions to buy more properties including taking out more loans. And in case it’s not that clear to you what is wrong with hasty decisions, it’s the likelihood that you are making investment moves purely out of emotions. When emotions are high, logic is often swept to the side.
Also, when there is a boom in the market, the competition is tough and the prices go up. It’s harder to score good deals
We have seen a shift in the momentum of the property market over the last twelve months. Low mortgage rates drove the boom. However, now the banks are raising their interest rates slowly. Inflation is also climbing.
While this might mean a bust in the property market movement, there is no one sure way to tell. In the case that the boom remains, what are the things that you can do to spot good investment deals?
Remain an attractive buyer
“Who can afford to buy a property in this market? The prices are touching the ceiling.” This is a valid reaction to the continuous rising of prices in the market. However, just because the prices are high doesn’t mean you are going to park your whole portfolio and wait for the whole situation to die down.
As an investor, you must have a list of criteria of all the good things that makes a property worth investing in. This must apply whether the market is booming or in a decline.
Go to viewings if a property satisfies your requirements. Remain connected with your local agents. There are good buys even in a very competitive market. You just have to show up as an attractive buyer to the agents.
When you show that you are serious about scoring another investment property at the right time, agents will probably call you even before a listing goes public. Before properties hit online portals, you get access to them. Agents don’t like wasting time which is why serious potential buyers are always attractive to them.
By showing genuine interest, you get first-row tickets to good property deals.
Build rapport with agents and brokers
Adding to the last tip, a good rapport with agents is a vital tool in securing good deals. You are a serious buyer actively looking for good properties. And an agent is looking for a serious buyer to offer properties. It’s a win-win for both of you.
Building rapport means communicating to your agents what properties you are looking for. You also have to inform them of the criteria that you have. Tell them how many properties you have in your portfolio. And finally, keep your lines open.
You also have to maintain communication with your broker. Be the first one they call when a good loan product comes up.
In every viewing that you go to, keep mentioning these things. If one day, they get a property that matches your criteria, they will remember you and give you a call.
Check-in with the agents regularly. Every week or two, a quick call to your agents asking about properties will help.
Make strong offers
An offer is not only considered strong when talking about how you match up the asking price. You also have to let the vendor or agent know that you know the ropes. If you have a team behind you that will take care of the sale process very quickly once you seal a deal.
When it comes to naming a price, in a booming market, the “go low” strategy doesn’t work anymore. The prices are high, it doesn’t make sense for a vendor to sell their property at a lower price. Instead, calculate the asking price and consider what work needs to be done on the property if any. Decide on the highest offer that will allow you to get the return you desire.
Aside from these tips, you can also try to invest in other areas you have not tried investing in before. Some markets offer promising potential compared to established ones which many investors are vying for.