Should I Buy Property Now, When Market is Down
When property market is in the midst of a down term, it is smart to consider to buy a home. Every real estate investor wants to realize what the best time to purchase a property is. Specifically they are more considerate about buying in a down market when real estate prices are declining and sellers are more benevolent to negotiate.
Downsides of Buying
Many people say a Realtor says “Now is the best time to buy.” That’s right, and here is why you might not want to wait to purchase a piece of property in a down market.
Best Bangkok Deal from Motivated Sellers
- If you want to upgrade to a more luxury property in a down market, now could be the smart time. The longer you wait to sell your current property, the lower the price of your property could fall.
- If you have a cash or you have a good credit history with your bank, then buying new property in a down market is smartest decision. Why should you wait until prices start raising, if you can pay less now!
- If you sell and buy at the same time, you’ll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale.
Watch for Motivated Sellers
In any period of time there will be some homeowners who want or need to sell their properties in a hurry. This will give you additional bargaining power. Here are some examples when sellers are motivated:
- The property was listed for sale during a long time (several months) and price was reduced couple of times already.
- When at the showing, the home is empty, which means that the owner has moved out and might be holding two mortgages.
Asoke Collection – 3 best deals from motivated sellers
It is not always as easy to determine precisely how much leverage you have since a homeowner may have many different reasons for selling home. That is where your real estate agent can give you a great advice about the seller’s motivation, though. Professional property agents have access to the multiple listing services and can advice about the selling price for similar properties in the neighborhood. Usually realtors also know how long the property has been on the market and recommend specific price negotiation strategy for your target property.
Buying from developer or flip?
Thousands of new condos continue flooding on to the Bangkok market even when mortgages are very difficult to get. This put a pressure on developers to reduce prices and offer deals to buyers. But, don’t jump into this blindly. There is another excellent opportunity to get even better deal. There are plenty of people who pre-paid property two or three years ago, and now need to pay a balance that is usually a huge 70-80% of the price. Some of these people cannot afford such a payment now and are willing to flip their contract with the same price as it was 3 years ago, or even a little bit lower. You will never get such a deal from developer.
Ask your agent about these cases and, if you need a good and new condo now, and you have funds, you can get the deal of your life.
Now, when market is down, is the smart time to buy property in Bangkok.
8 Best Condo Deals in Bangkok from Motivated Sellers
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Reprinted from RE/MAX CondoDee
CEO / Managing Director / Co Founder, Isan Real Estate Co., Ltd. Thailand
5 年As a professional Real Estate Broker, I can see Win's account being wise, as I can also see Haralds' reasoning being astute. If we only had that elusive crystal ball and could foresee the future! My humble opinion is based on personal needs and whether you find a home that suits 'your needs'. If you're within budget and not over committing yourself, then now is a very good time to commence your research. Investors for ROI do not make emotional decisions, they consider the best ROI available and if it is in their business model, they also should commence research. When the ROI is attainable, then is the time to consider making an offer. From my experience, there are always 2 sides of the coin, as above. In reality there is always that consideration of I want 'more for my buck'. We get many buyers making comments such as I'm uncertain as to what may happen with government policy? In my many years of corporate experience, especially when interest rates are low, I have never encountered any government policy directly affect property owners, other than taxes or reclamation for new projects, which obviously fall under the research category. I can only comment that one has to seriously consider their needs and if the timing is right, then it is your call. A tough decision but one has to make these, each day in their lives. Really an individuals decision, yet I lean in favor of Win's post and comments.
Commercial Leader - Sales, Marketing & Revenue Management
5 年Someone can argue that NOW is always the best time to buy ??. If the market is trending up, you get a better price than in 3 months. If the market is trending down, you can get a better / more modern / larger unit than 3 months ago. Probably the best strategy may be to wait until the current down trend bottoms out and enter the market once there are 2-3 months of consecutive increases. It always depends on whether you buy for investment or to live in the unit, cash on hand and risk tolerance Real estate is cyclical.. markets will recover and they will decline after being overvalued