If you have been listening to the news lately, especially Sunday night, you will have heard that for the first time in many years, the Sydney property market has fallen. Very slightly. But it has fallen. And the media will keep talking about it, which won’t help with buyer confidence in the future.
So, to all of our happy little property flippers and dreamers of big profits….now is the time to put the brakes on, just a tiny bit. We want you to tread more carefully. That doesn’t mean that there is no profit left in flipping (there is), but the time is coming where you will need to carefully examine each deal when you BUY. As you’ve heard me say before, the capital city markets should never be described as one. Infrastructure, particularly new transport links including the airport, new subdivisions, new shopping centres and schools, well… they differ from suburb to suburb. There are cities within each country and micro markets within each city, and each of those micro markets will perform differently, according to what’s happening.
The location, setting a realistic budget, sticking to it during the renovation, and being prepared to sell in a market where buyers won’t be bidding with the same unbridled passion as they were last year. All of these things matter. A shortage of supply is still a market driver and that matters too.
However, whatever you do, now is not the time to be tempted by the beautiful new tiles you see on Channel 9’s The Block TV show – some of those sell at $470 per sqm and unless you are renovating a $5million plus waterfront home, I won’t let you buy them. Especially for a $400K coastal cottage lol.
We have enjoyed a few buoyant years, where lots of people were making lots of money. The momentum in the market meant that even the worst renovation, was likely to end well. Almost everyone came out a winner.
Don’t panic, but it is time to be smart about where and what you buy, and renovating within a predictable timeframe. It matters now more than it did before.
Oh, and it’s a good idea to hang out with people who have renovated for a long time, who have successfully navigated through property market highs and lows before……just a suggestion lol.
For….The 2 Belindas