Springtime property valuers best cover their backs: Edwin Almeida's five tips for spring 2015

Heading into the new season, changes to funding by APRA will have an immense effect on all the developments that are due to compete for investment purchases of off-plan apartments.

Spring will be the start of the wick being lit for the eventual ‘POP’.

However APRA is not the only leveler of the market: I believe “property valuers” will begin to cover their backs as they dish-out valuations. They have already started to do so, as they become more and more aware of the glut of property now being completed. Coupled with this are rental guarantees and inflated commissions.  

Here's my top five tips for spring. 

1. Owner occupiers should sell, sell, sell.

Investors shouldn't buy off-plan properties and if they really want to get in; waiting till the end of the year means they will reap greater rewards as there will be close to 60,000 properties completed across Sydney and Brisbane alone. 

2. First home buyers should consider stable property, not new

First home buyers should approach and rent where they want to live as rentals across Sydney are lowering in price monthly and vacancy rates are also increasing monthly. Invest where money will be made; there are hubs outside of city centres with great steady capital growth possibilities and great low vacancy rates. 

3. Some BUT NOT ALL regional towns have and will continue to perform well for a few years to come

Some of the markets we have identified and have purchased property in have: steady capital growth, on average 6% yields + and vacancy rates well below 1.5%. The great appeal for some of my young family is also the great entry points with some properties below $200,000 making it manageable and not such a burden. 

4. Parramatta will be flooded with new apartments as they complete in the next 1-4 months

Properties in the Inner West of Sydney are also taking longer to rent out as renters have a greater choice. The western suburbs outside of Parramatta have had a huge build-up of granny-flats as well as new apartments. Again putting pressure on achieving yields and renting property out quickly. 

5. Stablished homes are primed for achieving great sales figures

Many buyers are still convinced that Sydney is hedged from a property bubble pop. I see a new development proposal just about every day and it startles me that the mainstream media still report under-supply running out of land and huge population growth. Frankly, I see the opposite. 

EDWIN ALMEIDA is licensee in charge of Just Think Real Estate.

He is also the creator of Oz Real Estate.TV and a presenter for propertyinvestingvault.com.