In a bid to maximise the value of a property, property investors are taking to bidding wars to try and win a better deal.
A bidding war has developed over the past few years between buyers and sellers, with many wanting to take advantage of the low prices to buy more than they can afford.
“A lot of people are doing it for their own reasons,” says Peter Kalles, head of research and consultancy at Real Estate Institute of Australia (REIA).
“They’re just finding out they can get a little bit more.
And it’s a bit of an escape from reality.”
Mr Kallets is part of the group of experts who advise the Federal Government on how to sell properties and sell them at the best possible value.
The group’s report, titled “How to Buy a Property for Under $200,000”, outlines how property markets work, what’s the best way to spend a property’s cash, how to protect your money in case of an estate tax bill and the best methods of dealing with property tax and property issues.
In its current state, there is a large amount of cash in the property market and the average property price in the Sydney market is about $230,000, with most being bought for between $180,000 and $250,000.
Real estate agents and buyers are also looking to profit from low-balling prices and to find deals that they can buy cheaply, rather than ones they can’t.
Mr Kapadia says the recent low prices have been an opportunity for buyers and the market is booming, but he’s not ruling out another sell-off.
“[It’s] a bit like a tsunami coming up the coast,” he says.
But he also thinks it’s worth investing in your future.
He says he’s noticed a shift in how people are looking to buy and where they’re buying.
I’ve also noticed a huge shift in the style of houses they’re selling, he says, with houses that are a bit more modern in their design, and houses that have a lot of character.
For example, if you’ve got a lot more modern design and lots of character, you’re going to be selling it in the higher end of the market and you’re likely to be buying the cheapest house you can afford because it’s going to have the character of the house and not the price.
If you have the price of the best house you could buy, you might be able to sell it and go into a different market.
And I think that’s really important, he adds.
You can’t just go into the house market and think, ‘Well, I’ve got an amazing property and I’ve already paid a lot’.
“You need to be able, at some point, to look at your cash flow, how many people are buying it and how much it’s paid off in property taxes and you need to make some decisions about how much you can put down.”
Auction house: The cheapest house to buy A house that is affordable and the right size is one of the most common reasons people buy a property.
This is because people tend to be more aware of how much they’re willing to pay for their home than they are for other assets.
As well as being able to afford the property, people also tend to think they will get more out of the property than they would if they were renting it.
With more houses available, it is easier for buyers to get their hands on a house they can sell at a higher price, because there are fewer buyers to consider.
There are also fewer buyers in the market for houses that people can’t afford to pay a deposit for.
That means you are getting lower and lower prices for a house, so you may be better off buying a house that you can sell for a higher profit than you would pay for a smaller house.
Land: How much can you sell a house for?
The market for land is a little different to the market in houses, so it is important to understand what you need before you buy.
What you need in order to sell your house is: a land licence and a property deposit The property tax rate for the state is usually about 1.5 per cent.
So if you live in the state and pay $250 a month in property tax, that’s a property tax of $500 a month.
Also, you need the land licence.
It’s a certificate that you get from the Land Tax Authority which says you own the land and the land tax is payable on the land.
So if you have a property in Sydney, you can buy the land for a nominal amount of $200 a month for up to 12 years.
When you buy the property the owner pays you the land transfer tax.
Once you’ve paid off the land you can either sell the property for $150