2018: TIME TO TAKE STOCK
Demand continued to outstrip supply,
but don't take this for granted.
I still believe there is some upside in the Market but 2018 should be a year of consolidation. Investors should take a good look at their portfolio and perhaps cash in on some investment properties that don't tick all the right boxes. If you have all your investment eggs in the one basket, 2018 is the time to divest.
Once again local residents are keeping the established market bubbling along. The new unit market will, I believe suffer from oversupply as major banks, local and overseas governments tighten the reins on lending, particularly to Chinese overseas residents. Eventually this will lead once again to an over supply of new apartments.
The new year will also bring changes to lending criteria by domestic banks to local residents making the serviceability of loans more stringent. Investor or interest only loans were down some 35% in the last quarter stats.
These criteria will not just affect the Gold Coast but will also affect the Melbourne market. Our office in Melbourne is already seeing a slight downturn in the market. Rapid increases in value over recent years could impact heavily on families who entered the investment market at the top of the cycle. Again, 2018 will be a good time to consolidate and have a really good look at your investment strategy. Those residents who have been considering retirement and a change of lifestyle/location should perhaps put that plan into action and think seriously about selling the home in Melbourne for a windfall price, buying in their chosen retirement destination and perhaps putting away a million dollar nest egg.
It is important to remember if you plan to sell a property in 2018 stay within the parameters advised by your agent otherwise, if you aim too high the property will stagnate and have that stigma of an unsaleble home.
We, like most agents are finding a lack of listings to be our biggest hurdle at present. All our listings during the year sold within days of hitting the market. This is for two reasons. One is a general shortage of good properties, and secondly our 40 year experience in this industry assures sellers that everything is being done to achieve a sale. We build a campaign in the 2 weeks prior to marketing that ensures large numbers of potential buyers view the property on the first weekend of listing, which generally leads to buyer competition and a most satisfactory sale price for our sellers.
Good luck in 2018 and if we can be of assistance, call
Jamie McDonald 0404 85 95 85 (Gold Coast)
Bob Wright 0425 740 866 (Melbourne)