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Buy/Sell/Rent
Selling House in Australia
Selling house in Australia is not that easy.
Australia proved to be relatively immune to the global economic crises.
The property market is pretty healthy but this does not mean it is easy to sell your house in Australia.
The property prices sky-rocketed over the past 20 years. It is not the price of the actual building but the price of the land which breaks the records.
In 2008 and 2009 there were some incorrect predictions that Australian house selling prices will drop. "Nope", they did not and they are still climbing.
There are many factors for this phenomenon:
- Strong overseas immigration into Australia
- Strong rural immigration into urban areas (Melbourne, Sydney, Perth)
- Strong market (One of the best performers compared with other industrialised nations)
Selling House in Australia for the Right Price
Selling house in Australia for the right price is not easy as it looks.
So, will I get the price promised by the real estate agent? Hmmm, most likely not.
The factors which influence selling your house in Australia are:
- How desperate you are (yes, agents can smell it despite the stories you tell them)?
- How affordable is your property?
- Is it suitable for a rent (this attracts investors - the strongest buying power)?
- How much renovation is needed?
- How many rooms (families and investors always look for 4 rooms, irrespective of the size)?
- Transport and facilities nearby.
Selling House in Australia = Ability to Buy
Australian banks do not offer loans as easily as it was in the past. The salary of the average citizen also did not increase substantially.
Roughly, $270K-$500K house is regarded as a great selling candidate. It is still affordable for family but very attractive for investors.
In Victoria $270K-$300K house 40km from Melbourne will have 3-4 rooms and roughly 18 squares in size. The relatively low cost of the house with high renting prices will definitely bring good returns for investors.
Anything higher than $500K may only attract wealthy owners. The house is too expensive for renting and too expensive for wider customer group.
How to Prepare House for Sale in Australia
There are many stories buyers will tell you in order to lower your price: "The walls need paint", "scratches on the floor", "It is too small", "Garden needs a make over".
Most of the comments are there to reduce the price. In some cases these comments also allow buyers to excuse themselves from looking further.
Generally, buyers want minimum of 3 rooms in a descent (not perfect) condition. Cooling and ducted heating is a must.
Most people have had bad experience with carpets. Thus, laminated flooring (or wood) is a real bonus.
Size of the house is important. However, investors are mainly looking at the price and those "3 magic rooms".
Add Value to Your House
Expensive renovations and additions which are not that important in selling your house in Australia are:
- Swimming pool
- Expensive fence
- Nice garden features
The above house features usually cost more than the buyer is willing to pay for them. However in some areas they would attract better buyers.