Mark Blake, Director at Luschwitz takes a moment to contemplate the 2016 market ahead and what are the big issues at play.
Mark Blake, Director at Luschwitz takes a moment to contemplate the 2016 market ahead and what are the big issues at play.
“We all know there are markets within in markets – financial circumstances can have totally different impacts on various types of real estate from Investment property, commercial and residential. Is there an oversupply of investment apartments? Will the banks lower valuations? Combined with the pressure of falling rental returns – will we see those markets have a huge adjustment….will the stock market drive more buyers into the residential investment market or will people start to hold cash knowing that they will not make a return… but at least it will not be negative. It will be a very interesting year with so much to consider.
One thing I am confident about is that quality residential property in good locations will always sell and sell well. There is an undersupply of family homes and I have never seen a start to a year with so few listings – we all hope this scenario will change soon…there is a stack of fantastic buyers out there in all price ranges keen to buy – but buy WHAT?
One of the area’s biggest issues is the aging in our population…there are so many empty nesters out there rattling around in family homes as there is nowhere for them to go. Their children’s generation are the ones that should be moving in and enjoying the benefits of a home for the family – but sadly there is nothing for them to buy as the parents have nowhere to go and little resales….the local councils have a lot to answer for…
Councils have been derelict in their duty to the local community. They have been very short sighted and not considered housing for the seniors market…building 5 storeys on the highway will never satisfy demand –it may fill the councils coffers, however locals don’t want small 2 bedroom units to live in, they want a nice low maintenance, single level home, villa or an apartment of size in a small boutique building where they can just lock up, go away and enjoy the years of retirement without the burden of maintenance.
Added to the planning problem is that the value of land has snuck up and developers struggle to make numbers work for a small boutique building…this pushes up the price for existing good quality retirement properties. The last thing empty nesters want to do is dip into super after selling the family home. In earlier times selling your family home was security for your retirement and was used as a nest egg – however today to purchase a quality smaller retirement home/apartment - the sale of the family home plus some capital is sometimes required.
As always the property market seems to be on a merry go round – and just like those in the financial markets we would love to have a crystal ball.”
If you'd like to talk with Mark about what the 2016 Property market has in store for you, call him on 0412 425 676 or email him at [email protected] .
by Gemma Luschwitz in Buying
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