What to consider when buying a property at auctions in Brisbane
Two of Australia’s biggest cities are currently experiencing differing property markets. The Brisbane unit market is currently going through a period of oversupply due to the excessive development of apartments and unrealistic pricing by vendors.
A drop of 0.6% in the value of apartments in July 2017 is in contrast with Sydney where values and rent continue to rise. Houses in Brisbane, on the other hand, are performing well, in part to the recovery of the state economy, while Sydney’s prices are rapidly cooling in light of reduced Chinese capital flow.
Here, we will have a look at how, in this climate, you can get the best value for your money in Brisbane property auctions:
- Conduct your due diligence.
Note that in Brisbane, buyers currently have around four weeks to conduct due diligence. It is during this timeframe that you should review recent sale prices of a property being auctioned in a certain location and have it inspected. Not only is it essential to conduct research on the properties but also be familiar with the laws, terms and conditions in the event that you will win. Bear in mind that in auctions, there is no cooling off period (you cannot change your mind) if ever you succeed; therefore, it is essential that you ensure everything is in order as best as you can before bidding. Also, be aware of the current market conditions, which at the time of writing, favour the buyer for apartments, and the seller for houses.
- Consider conveyance and legal costs.
Transferring a property from one legal owner to another is a process called conveyancing. This can be an extremely complicated process with many potential pitfalls. So if you have no experience in this field, it is advisable for you to hire a licensed conveyancer to guide you through this. Their fees may prove worthy if they save you the penalties incurred in the event that contract conditions are not met.
Please also be aware that to be legally able to settle properties in Brisbane, the solicitor must be working in the state of Queensland!
- Remember your budget and stick to it!
This tip is relevant whenever you consider buying a property, not just in Brisbane. Going over budget, however, is such a common occurrence that we feel the need to be reminded to stick to the budget. When winning an auction, a deposit will need to be paid. Enquire beforehand with the agent as to how much this will be (it is usually a percentage of the winning bid), and how it can be paid.
In the current market, Brisbane is showing better value for money than Sydney and Melbourne, as well as appearing more sustainable. Like these other major cities though, there is still stiff competition for housing, but there can be bargains to be found especially at auctions. Hence, it is important to follow these considerations when looking into buying properties at auctions in Brisbane in order to make the process as smooth and stress-free as possible.
Here at the MYG Group, we have vast experience in conveyancing. So if you are in need of help regarding the legal process behind this, feel free to contact us or call us at 07 5527 0094 and we will be more than happy to help.