As everyone know, the current property market is hot and the most properties are sold on first open home. We are looking at purchasing our IP and struggling to find a property. We prefer conditional offer with building and pest inspection as well as subject to finance (though we are high income earners without any kids in our early thirties). Our friends with many properties suggested always go with these two condition for being safe than sorry. My question is do you put these conditions normally? Is it safe to buy in auction?
Would You Make an Unconditional Offer or Win Auction in This Hot Property Market?
Young gardener on 08/04/2021 - 19:59
Comments
No time to do checks when it's that hot
Much better to be safe than sorry imho. Don't get sucked into the FOMO especially if you are looking at an investment. Property is something you invest for long term.
purchasing our IP
Seems crazy in this hot market but I guess this is what people are doing.
Is it safe to buy in auction?
You are in VIC so no cooling off period.
Don't come complaining you got screwed
"Subject to building and pest inspection" can probably be canned if you're purchasing an old banger where the capital improved value is small compared to the land. Never ever can the "subject to financing" unless you can actually pay 100% out of pocket (e.g. moving from one place to another place roughly the same value), or you already have final approval.
will your bank's valuation come back the same as your offer?
In Qld, I would say should still do Building and Pest at minimum if you plan on keeping the building itself. The last thing you need is to buy a building for a few hundred k to a mil only to find out that there are a lot of fixes required or it's falling apart or there's termites. My banker said can shorten the finance approval and up your deposit to strengthen your offer but should not remove the Building and Pest Condition. Again this is Qld, other states would be different. I thought if it was Auction, in an ideal world, you would have done the Building and Pest beforehand and then if satisfied, you would bid.
Forget about getting 'subject to' … for properties which are selling by way of an auction esp in this hot market.
When I sold 3 NSW properties at auction, around 2017 which was the end of another boom, I would only accept an offer that included a s.66W certificate (which waives the cooling period and makes it like auction conditions).
Go get your buidling and pest report before making an offer, otherwise to me (with my vendors hat on) believes you just are not serious enough.
When I sold 3 NSW properties at auction, around 2017 which was the end of another boom, I would only accept an offer that included a s.66W certificate (which waives the cooling period and makes it like auction conditions).
My wording could be more concise.
I listed three properties to be sold at auction on x date.
Anyone who wanted to make an offer prior to x date had to be willing to include an s.66W certificate upon exchange of contract.
Buying property is perhaps one of the biggest gambles right now. Supply is 25% down on the last 3 years so you are overpaying to get ownership of something now that will be easier to get later.
Property is like GPUs or AMD CPUs right now. Scalpers are snapping them up because there is low supply right now. You can pay a scalper over and above what the product is worth to get it in your hands now. Or wait until later in the year when manufacturing catches up and the price drops.
Actually, no. The scarcity of house + land is going to ensure there's inflation in price. Apartments yes they suck.
Wait until borders open and those who didn't buy while they had the chance will be crying.
After every recession property has pumped, every single time.
Deleted.
Realised I didn’t have anything meaningful to add that hasn’t already been said.
Normally, Yes.
For the FOMO no… and have heard of people just show up at an auction bid and won, and not done any checks prior. Each to their own.