In the wake of rising interest rates and a cooling property market, opportunistic buyers are on the hunt for distressed listings. These listings are typically properties that are being sold by sellers who are under financial distress.
Over the year to October, property searches on realestate.com.au that featured the keyword “mortgagee” surged 229% compared to a year earlier, becoming the 12th most popular search term.
The jump was notably significant in Victoria and NSW, which saw a whopping 444% and 376% increase respectively.
Meanwhile, “mortgagee” searches jumped 164% in Queensland, 162% in South Australia, 120% in the ACT, 90% in Western Australia, 72% in Tasmania and 53% in the NT.
Low levels of distressed sales
There are a number of reasons why opportunistic buyers are attracted to distressed listings. First, these listings are often priced below market value, which can provide buyers with a significant discount. Second, distressed sellers are often motivated to sell quickly, which can give buyers more leverage in negotiations. Third, distressed listings can be a good source of investment properties, as they can be bought at a low price and then rented out for a profit.
According to a recent search data report by realestate.com.au, searches for the keyword “mortgagee” have surged by 229% over the past year. This suggests that buyers are increasingly interested in finding distressed listings.
The increase in interest in distressed listings is likely to continue in the coming months, as interest rates continue to rise and the property market cools. However, it is important to note that the number of distressed listings is still relatively low. According to Fitch Ratings, the 30-plus day mortgage arrears rate for the September quarter was just 1.12%.
Buyers who are considering purchasing a distressed listing should do their research carefully. They should assess the financial situation of the seller and the condition of the property. They should also be prepared to act quickly, as distressed sellers are often motivated to sell as soon as possible.
Tips for buyers who are interested in purchasing a distressed listing
- Do your research. Before you make an offer, it is important to understand the financial situation of the seller and the condition of the property. You can do this by reviewing the property’s title search, financial statements, and inspection report.
- Be prepared to act quickly. Distressed sellers are often motivated to sell as soon as possible. This means that you need to be prepared to act quickly if you find a listing that you are interested in.
- Get professional help. If you are not familiar with the process of buying a distressed property, it is a good idea to get professional help from a real estate agent or attorney.
With careful planning and research, opportunistic buyers can find great deals on distressed listings. However, it is important to remember that these listings can be risky, so it is important to do your homework before you make an offer.
Our project HERE for you
______________
LIKE AND FOLLOW US ON FACEBOOK FOR NEWS
CONTACT US NOW: 02 8021 3139
