If there is one thing I know it’s that 99% of property purchases are the result of lengthy planning and very considered analysis. Very few people happen upon an auction and purchase on the spur of the moment!! I absolutely recommend a careful and considered approach, however, there are times when a subtle shift in the focus of that analysis might be of some benefit.
The thing is, regardless of the strength or weakness of the market a key criteria in many…perhaps most…property searches is to ‘find a bargain’. I totally get that. Buying at a price with immediate opportunity for value growth is a great property outcome. But the thing is, there are times when the best property is actually the most expensive. And I’m not just talking about multi-million dollar listings.
The clearest examples of this premise are perhaps the meticulously planned communities. In precincts such as Green Square, Penrith, Alexandria and Wentworth Point a swathe of new properties may be listed at the same time. In that circumstance buyers quickly and easily appreciate the property with the best location, outlook, the right aspect combined with good size and design will be the most expensive. You are paying a premium for the best. It doesn’t mean the other properties are bad – just that you need to pay more to get more.
And in more cases, than you might expect I think buyers in established suburbs would be wise to apply the same wisdom. The best property might well be the most expensive.
I’m not advocating blowing a carefully considered budget. What I am saying is that with a budget in place don’t further restrict a property search by demanding it be a ‘bargain’. If you pay good money for a good property those fundamental elements such as aspect, location and outlook will deliver you a good return regardless.
Of course, there will always be people searching for a ‘fixer-upper’, and those with the time, determination, budget and skill to transform an out-of-date home into a modern masterpiece.
Go for it. Enjoy the project and appreciate the rewards.
My point is don’t automatically be put off if a property doesn’t present as a bargain. I recognise the market is going gangbusters right now so it can be frustrating to see values rise but keep in mind the most expensive property might very well be because it is the best. And in that case – it might be worth it.