25 May Video – Investors not to blame + How not to lose 25% when you sell
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One advisor says a lack of affordable property is NOT the fault of investors – overseas or local – but rather, owner-occupiers.
Heath Bedford, an associate at Performance Property Advisory, believes the blame for affordability is being unfairly laid at the feet of investors.
Bedford says the problem has more to do with population growth, tightening supply, low interest rates and city-centric planning.
He says planning approvals are skewed towards high-density apartments in areas where there’s demand for lower density and owner-occupier housing, all of which lower supply and consequently increase prices in the homeowner sector.
Bedford believes it’s these emotional owner-occupier purchasers who are driving prices, not investors who are attuned to financial returns.
In other news
There’s traditionally a slowdown in property markets leading up to general elections, as voters wait for the outcome before committing to a property deal.
That has always intrigued me because any change in Government will have little or no impact on property markets in the short term if at all.
Even if we do get a change in Government at this years election, any changes to negative gearing will take time to impact prices.
In some ways investors and property owners should be doing the reverse, taking this time to buy when demand is slow, competition not as strong and there are more opportunities to negotiate harder.
When it comes to selling a property, Angus Raine, the executive chairman of Raine & Horne, says the July election is perfectly timed, as markets are normally slower during winter.
Raine believes the date will enable vendors to effectively list their properties in July and August, in the lead up to the traditionally strong spring selling season.
Just on the point of selling in this market – here is a tip – buyers will offer up to 25 per cent less than the asking price if a property is badly presented – that’s according to some Finder.com.au research.
Improving street appeal, decluttering and creating good light and ventilation in a property will help during inspections and they don’t cost a lot to do.
I suppose the flip side to this is if, as a buyer, you can see past the clutter to the good bones you might be able to jag a bargain.
If you look hard enough there are always silver linings.