Buying strategy close to Christmas

[danwatto]

Hi All,

I'm still searching for one more IP in the leadup to Christmas, and wary of the Christmas period but also don't want it to stop me.

This is the first time I've been buying at this time of year.

Some things I'm thinking about now:
1. Placing offers on vacant non-investor houses, as they are keen to have a sale "before Christmas". So far vendors have been tight, and not coming down much in price. I'm hoping this just means that either it's not close enough to Christmas, or I have just found the wrong vendors.. need more motivated sellers.
2. Vacancies and leasing over Christmas - Vendors like 30 day settlements, but I don't want settlement right before Christmas where I can't find a tenant. I'm adding to offers that we need access for 2 open houses prior to settlement - but I'm still not confident of getting tenants. If the price is good, I can live with some small vacancy.
3. As it gets closer to Christmas, settlements can't occur in Christmas period due to shut downs at Solicitors and banks, so I'm not too worried about any contract signed after say 25th November.
4. Finance - I'm assuming finance approvals will take longer so I may need a 3 week finance clause if it gets close to end of December.

Is there anything else at this time of year I need to think about?

Are there less buyers at the open houses now due to everyone Christmas shopping and attending events?

When do real estate agents stop showing houses? Do agents in Brisbane have a shutdown period?

Do I need to try really hard to get one signed now, i.e. come January is the market going to flood with buyers again that had been waiting during Christmas? I know the owner occupied crowd doesn't want to buy now, as no one wants to move in December, but will they all come out in force in January?

Anyone had experience that they can find better deals leading up to Christmas than at other times? More motivated sellers?

 

[Neptune]

I'm also in a similar situation and been thinking about this.

Even if a property is vacant for a month over Xmas, then it's only a small amount in the grand scheme of things so maybe offer 2k less than you were going to, to cover this expense.

If a property didn't sell before Xmas, then wouldn't the vendor be more motivated to sell in January and likely to drop price a little?

Also, the Xmas/New Year period is a time where people reflect on their lives/goals etc for the new year and often decide that this is the year they are going to invest in an IP and then hit the marktet in Jan without little research so you will be competing against them too.

 

[SK Investments]

If a property didn't sell before Xmas, then wouldn't the vendor be more motivated to sell in January and likely to drop price a little?

My BA likes the January period when the agents are back but the buyers are still in holiday mode. The theory is that it's a period where the buyer interest is low, and the vendor may be disappointed that the property didn't sell before Christmas, and therefore may be keen to take your offer.

 

[danwatto]

Very good point.. If I don't get any of my lowballs accepted I won't worry too much and will take my time.

 

[mikezen]

I have bought at this time, and it's good, many people want a fresh start to the year and may accept a bit less, depends on market though of course

 

[The Y-man]

If a property didn't sell before Xmas, then wouldn't the vendor be more motivated to sell in January and likely to drop price a little?

My favorite time of the year to buy property.

Our last two IP's were bought within weeks of each other last Xmas/NY. (Thanks PT bear for getting finances organised over the holiday period! )

Vendors know there won't be anyone looking for up to a month and a half as agents and potential customers go on holidays - so they are usually keen to wrap things up, than pay another 6 weeks of interest / holding costs. Particulalry good for propoerties passed in at a Decmeber auction.

The Y-man

 

[danwatto]

Thanks, keeping me motivated. I've been hunting and buying for almost 6 months now starting to get tired and impatient.. I hope I get a bargain before Christmas.

Seen a few today that are ok but overpriced, got a few more inspections to go to.

Will put some more offers in, though I think their asking prices are far too high so these offers will sort out which vendors are serious, or I'll have to come back again..

 

[z611143]

Also been thinking about this.

Was wondering what the general consensus was from those that are experienced and been around for a while as they would know best.

I wouldve thought before xmas, like now vendors could potentially be happy to take less, sell feel good that its over and head into the holidays with enjoyment?

Im also thinking about low balling a couple i like going into christmas.

However 'The Y man' whos experienced from what i read believes Janurary to be a good time to buy to get a good deal

 

[The Y-man]

However 'The Y man' whos experienced from what i read believes Janurary to be a good time to buy to get a good deal

Only if the agent is open in early in January!

Reasons:
- Properties passed in at December auctions back on the market
- Less competition (everyone away on holidays etc)

The Y-man

 

[JamieMonkey]

If there is a lack of competition and bargains to be founds, I'd be happy with purchasing at a lower rate and accepting it might be harder to find a tenant immdiately and risk it being empty a few weeks tbh

 

[danwatto]

Managed to get one

Out of area agent, passed over at auction, divorce sale, and vendors difficult to deal with.

Took a bit of patience, but very happy. Won't relax fully until the building inspection is back though, hope it's OK. If inspection is good, it will make all the effort worthwhile - my Christmas present to myself

 

[beachgurl]

This is an interesting thread. I was going to put my place on the market in a few weeks just because the renovations will be complete by then. Didn't realise that the majority of buyers are expecting bargains. Food for thought as to whether I hold for a bit longer and weigh up whether the holding costs on an empty house are less than a potential higher price by waiting to list til after the new year.

 

[Tranquilo]

Managed to get one

Out of area agent, passed over at auction, divorce sale, and vendors difficult to deal with.

Took a bit of patience, but very happy. Won't relax fully until the building inspection is back though, hope it's OK. If inspection is good, it will make all the effort worthwhile - my Christmas present to myself

Congrats!

 

[The Y-man]

The other impact is that because financing and B&P inspections can take a bit longer (due to people being on holidays etc), people often put longer "subject to..." expiry on offers during Xmas.

It's a great time if you can go in and are able to make unconditional offers.

For instance as a seller, suppose you got

A. an offer mid-december, and one was $high subject to finance/b&p "give me until end of january to make up my mind coz my inspection guy and broker is on holidays",

B. unconditional offer $Lowball, "SETTLE end of January coz my conveyancing lawyer on holidays"

Which would you take?

The Y-man