Navigating the property market among the uncertainty linked to the COVID19 pandemic has become increasingly difficult. No one has all the answers.
Our Managing Director John Macalyk has over 30 years of experience in the finance industry, he's seen many ups and down over the years so we thought we'd share some of his wisdom today:
For prospective home buyers out there: Unless you don't have a choice, try and avoid buying at an auction. You’re competing against other people where emotion will drive the price higher. When you buy by private treaty, you can keep negotiating. Not only is it less stress than an auction, but you might miss out on the property if you wait for the auction because many properties are sold before auction.
For vendors: If you’re a vendor, trying to get the top price is your aim. But any offer within 10% of your top price is worthy of consideration. When you receive an offer from someone who is trying to knock you down in price, why not hold the price and offer terms? Let them know you might consider a delayed settlement. Or you might consider delayed payment for a small part of the price say “I’ll leave 200K in there at 3-5% for 12 months”. This is more than the banks pay for deposits, and you have a second mortgage security which ranks next after a bank’s first mortgage. This means a purchaser who may be short of getting $1 Million together, but can get 800K can buy the property. You get full price but you get it in 2 stages.