More Groundhog Than Groundhog Day, Steep Roads Lead To High Mountains & One Enormous Plate of Food
Another month and another interest rate rise…yet again.
I wrote an article about ‘Groundhog Day’ a few weeks ago and it feels more relevant now than it did back then.
New headlines of…” Financial Crisis Looms’, “More Pain To Come For Aussies”, “More Interest Rate Rises On The Horizon” are plaguing the news portals at epidemic proportions.
The only silver lining is that there’s a slight hint from Philip Lowe that we might be close to the peak of this rate cycle.
Talking to buyers and sellers out in the community, there’s a common perception that any stabilisation of interest rates (or perhaps even a reduction) might be the impetus for property prices to rise again…and I believe that it would be a big mistake to make property decisions based upon this assumption.
As we all know, many Australians will be coming to the end of their fixed term loan between now and the next 2 years…and whether the new rate is 5.5%, 6%, 6.5% or 7%, there will still be financial stress amid the much higher mortgage repayments.
And of course, the costs of living aren’t about to drop in a hurry either.
Anyway, enough talk of interest rates – I’ve spoken about the topic plenty this year already.
I want to talk a little today about presenting your home for sale.
I don’t want to yabber on about things you already know…the importance of decluttering, landscaped gardens, fresh paint etc.
But there’s a trend I’m noticing when I’m appraising homes right now – there’s plenty of people about to sell that simply don’t have the time, the money or the inclination to present their properties as good as they possibly could be.
It’s perfectly understandable – in a market where the costs of basic materials have skyrocketed, the ability to engage a tradie in a timely manner is compromised and when the market might be heading for some sort of correction, the general consensus amongst sellers is that it’s all too hard.
But the little saying that I’ll quote is this…”Steep Roads Lead To High Mountains”.
If you’re finding it challenging to find a painter, book in a time for new carpet to be installed or replace that damaged kitchen bench top, remember that there’s many other sellers out there that are experiencing the same sort of frustrations.
And if it’s all too hard for you to undertake the work, it should be no surprise to assume that buyers will be thinking along the same lines.
If a buyer inspects a property and deduces that there’s work to be done in order to present it the way they want it, they will usually over-estimate the cost of making these upgrades…and when everyone knows how much these costs have exploded, you can imagine how much room a buyer will leave in their offer in case the costs blowout to a figure that’s above their expectations.
As I’ve mentioned recently, the market is a little ‘two-paced’ right now and it seems to have little to do with particular areas, price points or types of property.
But what is quite apparent to us is that it does have a lot to do with how much work is still to be done in order to bring it up to today’s standards – a property where everything is done is highly desired by many buyers and usually attracting solid offers very quickly whilst a property with work to be done (particularly large-scale renovations like kitchens and bathrooms) are less attractive than they were when costs were cheaper.
Does this mean you should undertake large scale renovations before you place the property on the market?
Not necessarily – it really boils down to the area you’re in, the price point of your property and the current supply and demand levels.
We believe that it’s more important than ever to obtain the right advice from an agent that’s truly connected to the market as it’s a tight-rope to walk right now – it’s easy to over-capitalise given the high costs of doing so but it’s also easy to leave so much to do that your property might not achieve what it deserves in spite of its’ shortcomings.
If you’d like us to appraise to your home and want credible advice, you’re always welcome to get in touch and we’d be happy to provide an honest and obligation-free opinion.
Until next week…Happy Listing and Happy Selling.
Feature Property Of The Week…
This week’s ‘Feature Property of the Week’ is 3 Heston Street, Stafford Heights – A gorgeous high-set brick residence that provides a plethora of internal living space as well as numerous outdoor living alternatives. Situated in a wonderfully elevated position that’s right near the Stafford Heights State School, you could argue that there’s no better position in Brisbane given your close proximity to the airport, Brisbane’s extensive tunnel system, Westfield Chermside, buses, a host of other schools and even the CBD. Offering generously sized bedrooms and living areas on the upper level as well as numerous living options on the lower level (even though it’s not quite legal height downstairs), this home could easily accommodate a large family. When you consider the fabulous renovated kitchen, the gorgeous renovated bathrooms and the choice of three outdoor living options (including the huge rear deck, the massive rear pergola area and the delightful balcony), you’ll realise that this property is quite a unique find. Immaculate in presentation and occupying a large 673m2 allotment, make sure you inspect this one quickly before someone else recognises the opportunity in what is always a tightly-held area in any market conditions.
Insights Article…
Here’s a news story published today that highlights some of the key data surrounding the position of the property market right now. There’s some sobering statistics within this story but at least it does provide a snapshot of where the market is at. Certainly this is worth a read…
Click Here To Read Article
Did You Know…
When Michael was a young fella, he remembers that the very first autograph he obtained was from the legendary rugby league player Arthur Beetson. ‘Big Artie’ (as he was affectionately known) was at Redcliffe Leagues Club back in the early 1980’s when Michael asked him for an autograph as he was about to tuck into a meal. He signed the back of an old envelope (Michael still has it). Michael says he remembers looking at the plate of the food that Artie was about to devour and wondering how any person could eat so much in one sitting. Michael says he was a lovely man and years later, he was fortunate to meet him again – a worthwhile ‘Did You Know’ in light of the historic ‘Dolphins’ first NRL victory last Sunday.
The Michael Spillane Team’ continues to set new bench marks for the number of appraisals we’re conducting right now. There’s little doubt that we’re about to see a lot more properties on the market in the coming months. If you’re a buyer, there will certainly be more choice but remember – if you’re listing and selling in the same market conditions, it might be a good time to act before interest rates continue to rise
