Four Windows of Opportunity in Today's Market - October 2024

By Rich Harvey, CEO & Founder, propertybuyer.com.au

For decades, the New South Wales Central Coast region was in a property market holding pattern. It was flying under the radar of homebuyers and investors alike. But COVID’s significant upheaval brought the region into the limelight. Now, a raft of drivers across the political and economic spectrum will deliver exciting times to the Central Coast – and those who own property will be among the biggest beneficiaries.
Anthony Knight, Principal buyers’ advocate for Propertybuyer on the Central Coast, has lived in the region for decades. We recently chatted about the region and why he’s excited about what’s to come.

Today’s property market is one of the most interesting in recent memory. Here we sit, dealing with multiple factors pushing and pulling activity in various, and often opposite, directions.

High construction costs and interest rate rises combine with a tough lending environment to put downward pressure on prices. But throw in tight rental markets plus the need for more housing in the face of record high immigration and you have a recipe for price growth. Then there’s uncertainty about employment and economic stability to add to the equation.

The whole thing is a washing machine of mixed metrics, so predicting property price direction in any location is an enormous challenge.

But even in these testing times, there are chances to buy well, particularly for those with a long-term mindset.

To that end, I’ve come up with four “windows of opportunity” that a savvy purchaser –or their buyers’ agent – should be considering right now.

1. Interest rate rebound

Rising interest rates in 2022 and 2023 proved challenging for borrowers. Repayments on mortgages increased at a rapid pace. The change was particularly abrupt for those moving from fixed-rate to variable loans.

That said, all the talk right now is about a pending rate reduction. While inflation has remained stubbornly above the RBA’s target range, most economists agree the next shift will be a cut.

Here’s where the opportunity lies. Years of experience tell me that when the rate cut does come, there will be a quick, positive reaction by buyers. Fuelled by confidence and higher borrowing capacities, these purchasers will compete for quality property, which will invariably increase values.

I am advising many of our clients not to delay on their purchasing plans. They must get in ahead of the rate cut. By utilising our skills to unearth and secure a quality property now, these purchasers will enjoy an instant uptick in equity when the rate cut is announced.

2. Value add to multiple income streams 

Multiple income streams from a single asset allow you to offset more outgoings, making holding for the long term even easier. By strategically adding features like granny flats, or purchasing duplexes or dual occupancy dwellings, homeowners can significantly enhance the yield potential of their properties.

Moreover, property owners can explore changing tenancy arrangements to rent by the room, which is particularly attractive in high-demand areas near employment hubs, universities or major centres. Renting by the room can yield higher returns than traditional leases, especially in markets where demand for affordable accommodation is increasing.

This strategy also minimizes vacancies in your investment, as individual rooms can be leased to different tenants, providing a flexible and diversified income stream. Many of these landlords turn to specialist leasing managers. These professionals are experienced in coordinating shared accommodations and can help navigate the complexities and compliances of renting by the room. They can handle everything from marketing the property and screening tenants to managing leases and maintenance, allowing property owners to focus on growing their investment portfolio.

As the demand for flexible living arrangements continues to rise, these approaches will likely remain in high demand, presenting an opportunity for savvy proactive property investors.

3. Town planning upsides

The rental crisis has those in power scrambling for ways to increase housing supply, particularly within some of most desirable inner-city suburbs across our capital cities. This is where housing is sorely needed and what we’re finding is that certain councils are stepping up to assist by changing town planning requirements to encourage more construction.

There has been a range of legislative amendments across the country. These include increased densities for redevelopment sites, smaller permissible lot sizes in some established zonings and even the ability to construct and lease out granny flats.

Buyers’ agents can help you spot properties with a town planning edge. As specialists, we are well placed to analyse their potential and advise accordingly. Even if you don’t complete any development yourself, holding a property with greater potential over the long term tends to result in exponentially better capital gains.

4. Off-market listings

Off-market opportunities are available throughout most market cycles, but we’re seeing a few extra come across our desks right now. Those mixed drivers I mentioned at the start of this article are causing sellers to feel uncertain about the future. As such, those looking to offload their home or investment want their selling agent to test the waters before going to a full marketing campaign. In most instances we hear about these off-market properties via our agent network and have first opportunity to secure a great property for our clients.

Windows of opportunity are open in today’s markets, but some will close quickly as we move further into 2024. If you’re keen to lock in the right property for your needs, then my best advice is to act quickly. Contact one of our team members and begin a conversation to help you secure a home that takes advantage of today’s conditions, so you profit in the future.

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