2018 vs 2019 - check out these bargains, folks.
No one who purchased property at the peak — in 2017 and early 2018 — is rapt about falling prices, but for those trying to get into the market now, this could be bloody brilliant.
Millennial buyers will benefit from more realistic prices in some states this year. Plus there are more first homebuyer benefits available to us than ever before. Zero stamp duty in Victoria and solid regional incentives. In Sydney, we’re seeing the most extreme price drops in decades and additional incentives, too.
But falls aren’t consistent across the board. So where’s best to buy? Well, that really depends on whether you’re planning to be an owner-occupier or an investor, as well as whether you’re prepared to go regional. And, of course, your budget will inevitably set some boundaries.
You’ll still need to be realistic. An apartment in Collingwood will set you back half a million dollars, a waterfront unit in Bondi is still worth well over a million smackers and proper grown up houses in Melbourne and Sydney’s best suburbs come with price tags to make you sob.
We’re not here to tell you what you can’t have, though. We’re here to motivate and remind you that this price correction is likely to be temporary. Many experts suggest we’ll come out of the slump in late 2019 or 2020. So your window to pay a ‘sensible’ price could be small.
Here’s proof that there are some cracking options up for grabs if you’ve got the funds. Stats are one thing, the actual examples are something else.
6/111-117 McEvoy Street, Alexandria, Sydney
In July 2018, a pretty standard Alexandria unit sold for $976,000. Now, in 2019, buyers have an opportunity to purchase something with more character, for less. The buyers’ guide for this two-bedroom place that’s currently on the market is circa $675,000. What?
Again, it’s going to auction in February. It might go for well over the price guide but in these uncertain days it could just as easily sell for close to this asking price. That’s $300,000 less than something similar just eight months ago.
10 Maddock Street, Footscray, Melbourne
Meanwhile in Melbourne, in the heady days of May 2018, just before things started to go to shit, a three-bedroom home in Footscray that needed a lot of work went for $963,000. It had few notable features, unless country pine kitchen cabinetry and blue carpet was your thing.
Less than a year later, this pretty sweet equivalent, that does need some work, but is totally liveable (and has adorable leadlight windows), is on the market for $650,000 to $755,000. It also has an additional workshop and a studio.
This is madness. Prices like this can’t last. We have our fingers crossed that a millennial family get their hands on this one.
If you’re a prospective buyer and want to work out how much you might save in 2019 compared to this time 12 months ago, search the sold prices for your preferred suburb and house style on one of the major real estate websites. There’s a good chance you’ll be inspired, particularly if you’re in Sydney or Melbourne.