Buyers can get ready to strike when restrictions ease. Picture: Robert Cianflone/Getty Images
Buyers must do their homework before launching into the spring property market when stage four coronavirus restrictions ease, experts say.
Realestate.com.au chief economist Nerida Conisbee said a key part of the househunting process was finding the right location to suit your needs.
She warned some suburbs and property types were “higher risk than others for price decline” — especially in the midst of a downturn. This was the case for the inner-Melbourne apartment market.
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“You could probably get a good price because there are a lot for sale,” Ms Conisbee said.
“But also keep in mind if you are investing it might be difficult to get a tenant.”
On the flip side, while “you’re not going to get a bargain” in premium suburbs like Elwood and Prahran, values were holding up much better there.
“Broadly, the outlook is very uncertain,” Ms Conisbee said. “If you are looking to buy now, keep in mind you’ll have far better luck (earning capital growth) by holding (the property) for a longer time period.”
Realestate.com.au chief economist Nerida Conisbee.
Collings Northcote director Christian Gravias said school catchment zones, public transport and nearby shops were important features.
“Find somewhere that has great amenities and where there’s lots of parks and outdoor spaces,” Mr Gravias said.
He added a diverse spread of stock was more desirable than a suburb dominated by apartments.
Real Estate Buyers Agents Association president Cate Bakos said online tools like Google Street View allowed buyers to carry out a “virtual drive-by” of their target neighbourhoods.
Once they’d nailed down a location, househunters should start researching recent sales to familiarise themselves with prices in that area.
“Get on a ‘sold’ tab of a search engine (like realestate.com.au) and have a look at what the going rate is for the product you’re after in your suburb of choice,” Ms Bakos said.
Buyer’s agent and Real Estate Buyers Association of Australia president Cate Bakos.
Buyers have been advised to do their research before Melbourne opens up again. Picture: Daniel Pockett/Getty Images
“(Don’t) look at quoted sale prices as they can come unstuck, especially where auctions are involved.”
Ms Bakos said would-be buyers should also use the lockdown period to start talking to agents in the areas they were looking to buy into.
“Agents will have a bit of time on their hands right now, they’ll be pretty happy to hear from you,” Ms Bakos said.
Mr Gravias said buyers would ideally buy a house or townhouse to capitalise on price growth, but apartments were a cost-effective alternative to get into a prized suburb.
He added villa units were “amazing if there’s not that many on the title”.
“They’ve got very good bones, they were mostly built in the ‘60s and ‘70s so the workmanship is great and they can be renovated,” he said.
“I’d be looking to buy an apartment that doesn’t have many amenities so the owners corporation fees aren’t too big.”
Extra car spaces and outdoor areas were also desirable, Mr Gravias added.
Castlemaine Property Group agent Elouise Dale said buyers looking to move out of Melbourne should “do a lot of homework” on what their target region offered, to be ready to pounce once restrictions eased.
“Castlemaine, for example, has a train station, and the NBN services that whole Mount Alexander area,” Ms Dale said.
She said she’d seen a surge in demand and multiple offers placed on every property she had listed for sale between Melbourne’s two major lockdowns. The easing of this one would create “spring to the power of 10”, she predicted, meaning buyers should “be prepared to be competitive”.
For budding first-home buyers, the research process should also involve determining what grants were available to them, Ms Conisbee said. These included stamp duty exemptions on purchases below $600,000 and discounts for buys up to $750,000.
Amy Lunardi buyer’s advocate Amy Lunardi said buyers with secure income should start their property search as soon as possible, predicting “a flurry of activity” in the market post-lockdown.
—with Samantha Landy
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