It’s fair to say that this is probably not the best time to be a property owner. And if you are an investor in multiple units, your woes could be multiplied.
On the other hand, if you are a renter, now could be the time to sign up for a long-term lease at a lower rent … if you can find one
There are so many factors assailing property prices, it’s hard to see a clear way forward. This week in the Flat Chat Wrap, property writer Sue Williams takes us through some of the areas where the market is dropping – and a few where it’s holding its own.
Property values are cyclical – what goes down will, eventually, go back up again – something we tend to forget in extended periods of price rises such as we have just witnessed, especially in Sydney.
And competing arguments just don’t compute. How can there be too many people in our cities when there seems to be an over-supply of properties? How can prices be going down when demand must be going up?
And how can our politicians bang on about housing affordability and then attack each other for measures that might reduce property values?
But then there are th poor blighters who put down a deposit to buy off the plan when prices were at their highest, who are now having to pay the balance on the purchase when their unit is worth a lot less than the contract price.
Can they just “burn” the deposit and walk away from the purchase? No, say some developers, a deal is a deal and they can’t afford to carry the loss on hundreds of new units.
From negative equity, to negative gearing. How will property values and rents be affected if Labor win the next election?
All of this is discussed at length in our latest podcast – including the view from one of Australia’s most successful property developers that negative gearing could be here to stay, even if Labor win.
Also, Sue exposes the latest rort in apartment development – how builders get essential services installed for free … provided apartment owners blindly sign contracts carrying inflated fees for years and years.