Property prices drop in most capitals - Australia
Reports out in the last week show property prices are receding in most Australian metropolitan areas:
In certain parts of rural Tasmania buyers are offering far below seller expectations for older properties with wear and tear and traditionally affordable area's blocks. Real estate agents are telling me that sellers will have to discount severely to sell in some of these locals because those with the ability to buy are watching their budgets. Mortgages are also becoming difficult to impossible to get for houses with tenants in and where investment is the point of purchase. Reportedly mortgages in general are harder to get in some areas in Tasmania particularly with the big four banks.
It would appear that certain areas of Tasmania are now extreme buyer markets. Before buying at the moment I would be doing extensive research, and if in doubt, do not buy. If you are unfamiliar with the traditional Tasmanian real estate market I would rent in an area for twelve months before purchase and get to know locals who you trust to give you good advice but always do your own research. Things like finding out how cold a suburb can be in winter can be invaluable knowledge when looking to buy. The other thing to do, is to find an honest real estate agent who will give you the truth when asked. They are certainly out there in Tasmania. There are some very honest gems out there that are worth sending business to. There are agents that list properties I refuse to deal with due to experiencing a lack of integrity when they have been asked for relevant property details or apparent lying by omission about critical details when looking to close a deal. If the same property comes up with an agent I trust I will look at it.
My advice is to look actively for months before placing an offer if you can afford to. Obviously, if the property that ticks all, or most of your boxes, becomes available then it is understandable that you would want to pursue it, but do find someone you trust to tell you the good and bad about the property so you make an informed decision and get a builders report. Unfortunately, drug addiction being what it is, it would be prudent to get a property tested for drug chemical residue (test cost around $100) in all areas of Tasmania, and consider a check of the electrics of a property by a licensed electrician along with a quote to fix any areas of concern. Check the government land titles website and list-map for flood prone, bush fire risk zone, land slide and general zoning issues. Research any developments due to go ahead in the area.