Weekly Market Pulse - 6th June 2018
If you were watching the Senate Estimates today you would have seen the Greens Party question the Australian Treasury about the tax relief gap between the genders and how it appears to be ever increasing. Interestingly we find there is more evidence appearing of what we have coined the ‘property condition price gap’. This is where properties very similar in size, location and offerings to others are experiencing a much higher sale price because the property is in great condition.
This includes getting the painting done, finishing the mulching in the gardens and tidying the house, not stopping there, the properties getting the best prices, the record prices in the current market are presented as best as it could be. That means staging the furniture, making sure all lights are working, having the temperature right in the home during inspections.
A great example, just recently we have seen two of the three homes all within 50m of each other sell at much higher prices due to the two properties being presented very well. There is not much difference between the homes, all three bedrooms, all have one car garage, all timber and iron roof, --- a premium was achieved because of presentation. So if you are going to market in the near future, spend some time with your agent to ensure you get the very best price. It could make a few years difference in your retirement age.
Loans are getting harder to secure and the current credit crunch is affecting how quick buyers can settle and how much they can borrow. Banks are getting out the microscope and pouring over the living expenses in finer detail before they will even consider offering a loan, this tighter habit of the banks is often reducing the servicing capacity meaning reduced loan sizes compared to what we have seen over the last decade. Our advice to any buyer out there is to ensure you are pre-approved before you go out into the market and try and secure your dream home, as you may end up not only disappointing sellers but yourself in the process.