The host of Selling Houses and Love it or List it Australia, and New Idea columnist Andrew Winter gives tried and tested advice for getting the best property deal, by debunking the real estate industry’s biggest myths.
We’ve all heard the saying: “Always buy the worst house on the best street.” In real estate, there’s no shortage of these commonly referred to adages, but how many of them are actually based on real evidence? Here’s how to sort out fact from fiction.
1. ‘You can’t lose money if you buy close to, or within 10km, of the CBD’ – MYTH!
This is one myth that belongs on the rubbish heap. The sad truth is that you can lose money on real estate anywhere, and if you buy in a boom and sell in a slump, those hard-earned dollars will disappear.
In real estate there are no guarantees, so it’s best to be wary if someone tells you that you “can’t lose money” or uses phrases such as “guaranteed returns” or “capital growth assured”.
While this may all sound daunting, history shows any losses you make on your property can be recuperated if you wait long enough. The question is, can you afford to wait that long? This is why any property purchase you make should be researched, then researched again.
2. ‘It’s ideal to buy the worst house on the best street’ – TRUE!
This is actually pretty good advice – within reason. For instance, the worst house could be a reno that involves way too much work, or it may simply not be the right home for you right now.
However, the main message behind this is correct; with property, location is king. While you can change things that you don’t like about your home at any time, factors such as geographic location, environment, immediate surroundings and amenities are all out of your control.
The things that can make your location a prime spot depend on where you live. If you’re in the suburbs it could include proximity to nearby schools and parks, or if you live in an urban area it might mean good public transport or bustling cafes and shops. For coastal homes, it’s all about being as close to the sand and ocean as possible.
Never buy in an area you’ve never been to or haven’t researched thoroughly.
3. ‘Never open the bidding at an auction’ – MOSTLY TRUE
Some might argue it depends on the auction scenario, however for the most part I agree that it’s best not to bid first. Why would you want to disclose your interest until you really have to? Sit back, let others do the work …
Having recently purchased a unit with this tried and tested method, it does pay off!
See Andrew Winter on Selling Houses Australia and Love it or List it Australia, available On Demand on Foxtel.
