State of the market survey – October 2007
Regulars to the 4BC Real Estate Show will know that we sometimes conduct surveys amongst those who get our regular tips and those who have been on the show. That includes developers, owners, investors, tenants and a broad cross section of the population. We value the feedback.
This week we conducted a survey (almost 700 people) about the market and the likelihood of a change of Government.
41% of people think that if there is a change of Government it will impact on real estate prices.
35% say it will be negative – 6% positive and 59% don’t know
On the back of that 54% of people say they plan to buy a property in the next 12 months
58% of people think the present government is not doing enough to help witbh affordability.
Here are some of their suggestions…….
Radmila thinks the crisis has as its foundation
- The reduction in the number of public houses available throughout the country over the past number of years.
- A lack of training low skilled employees so they can improve their skills and increase their earning prospects.
Alison says…
- State governments probably need to release more land, and cease stamp duties. Real estate agents need to reduce their fees for selling houses.
Marianne thinks…..
- Govt should increase first home owner grants.
- Allow first home owners to use a large percentage of their superannuation at an early age to fund deposit to purchase first home, with a reasonable ceiling - say up to $600,000K.
- Help developers by way of reducing stamp duties and hidden charges both state and federal, capital gains taxes, council contributions. There should be incentives for developers to provide rental accommodation
- There should be a total re-vamp of real estate agent’s commission
Ian says……
- Make land more affordable by cutting Government charges and red tape are causing delays in new suburban land coming on stream
Tricia thinks that …….
- Some support for first home buyers is needed and larger first home buyers grant or reduced interest rate will help.
Paul who is an investor with several properties says…..
- For first home buyers, more education is required. Paul suggests a Kevin Turner seminar on managing your expenses to pay off your home. He says there are practical ways to afford a home –Education and Discipline is the answer!
Peter thinks…..
A change of government Federally will see a return to the bad old days of spend spend spend by a Labor governement and high unaffordable interest rates. Peter is an agent and he senses property investors are getting edgy about a possible change. A mass exodus of investors from the property market will not only shatter prices but will also place enormous pressure on public housing potentially driving rents through the roof and also placing unsustainable pressure on State Governments and Community housing groups to meet demand that they already struggle to keep up with.
Adrian ……
- Is afraid that an increase in First Home Owners Grant would be absorbed into prices. Competition to buy is increasing prices..
- Adrian owns 4 properties and strongly believes in the underlying value of property. The current situation (rapidly increasing prices and panicked buying by owner occupiers) is sustainable but there must be a correction at some time. He is thoroughly enjoying increasing rental yields.
Paul sums it all by saying…..
- Abolish all taxes/stamp duties for first home owners and provide interest free loans.
If you want to take part in future surveys and have your say as well as get our regular tips and comments about the market…. Go to http://www.realestatetalk.com.au/ and click on Tips and leave a few details.
October 8th, 2007 at 4:39 pm
Hi Kevin,
The statistics you provided from your research on the Raine & Horne 4BC Real Estate Show are really fascinating. Looking at the data it appears as though there is a great amount of uncertainty in the market. I would be interested to hear your thoughts on how this will affect the market over the next year, especially with a possible change of government thrown into the mix?
In particular I would be interested to hear what you think about the provided statistic regarding the 59% of surveyed people who are looking to buy in the next year, even though 41% of the total surveyed participants think that a change of government will affect real estate prices in QLD. Do they think that this government change is going to create a good time/period to buy, or is their decision to purchase made out of the feeling ‘it is now or never’.
October 9th, 2007 at 8:53 pm
Thanks for your comment Peter. Like you I was fascinated with the thought that 54% of respondents say they will buy a property in the next 12 months.
This could be for two reasons ….
1. They believe prices will stabelise and present some good opportunities and/or
2. An investment in the next 12 months will show a good return in the long run as any slowing of the market will be short term and in fact prices will improve greatly in the future.
Time will tell!