Bargain Byron Bay Real Estate?

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Michael Murray, a licensed Real Estate Buyers Agent, has been sending out great real estate newsletters with a Byron focus for ages. I always read them and find them to be informative without all the hype you often get from the real estate industry.

I thought I’d share his timely article on ‘bargain’ real estate… I best shoot him an email to let him know I’ve posted this. You can get further information on Michael’s services &/or subscribe to his newsletter at; www.byronpropertysearch.com.au

Here are just a few ways to pick up a bargain:

1. CASHFLOW POSITIVE PROPERTIES: If the rental income of a property will cover the mortgage payments, management fees, repairs, and running costs then a property is definitely a bargain. Do these exist in the Northern Rivers region? Yes, they are possible to find away from the coast like Casino or Kyogle. In Byron, not really, but it is possible to find a property that can become cash flow positive with some work to increase the rental yield. There are buyers agents who are touting positive cash flow properties in mining areas in Qld. This is true but they have very little capital gain and can be transitory if the mine or infrastructure shuts down.

2. DISTRESSED SALES: A distressed property is one with a seller under pressure. Job loss or transfer, divorce, death, pending foreclosure, and lack of money cause sellers to sell fast for less. Discovering the seller’s problem and finding a solution is the key to buying a bargain property. Having local knowledge and contacts can help gather this important information.

3. UNDERVALUED PROPERTIES: The idea that a seller is going to list a property and be uninformed enough to sell it way below value is fairly remote. But with good research and market expertise it is possible to ascertain if a property is GOOD value. Undervalued properties can also be those that APPEAR to require a lot of renovation work, yet may only need some cost-effective cosmetic repairs.

4. FUTURE INFRASTRUCTURE AND VALUE ADDING: In some circumstances it is possible to gain information ahead of the general public on new infrastructure like roads, public transport or schools that can improve a property’s value. Or rezoning or development decisions within a council or government body can have rapid effect on a property. Then it is good to have access to that information.