I WAS having dinner at Teneriffe’s much loved Italian restaurant Beccofino’s when I bumped into a mate of mine.
My mate is a developer and our conversation swung to apartment prices and the good results he has been achieving in his new building.
But while he was exhilarated with the results coming from his new building he was gravely concerned about the prices being recorded for resale apartments in the local area.
Our conversation started to get meaty as we discussed the current market and market values.
He felt that anyone selling a second hand unit in this market was begging for a flogging and really any agent who was selling them should be dealt the same fate.
Despite this brash statement. We both agreed that now was not the right time to be selling an apartment and that likely it would be at least three years before the resale market would start to see growth.
But the part we couldn’t agree on was the reality that not all sellers will wait for an increase. Some people will, some people can’t as others just don’t want to. For market value to even be recorded it means owners are choosing to accept the offers on the table.
There is genuinely good value on the market right now and history could show that buying now is one of the best moves an investor could make or it could show something different.
But one thing is for sure, no one person or industry group can change a market, we all wish we could. A market gets influenced by supply and demand, funding restrictions, population, infrastructure changes, employment and that all leads to confidence.
If you can hold off selling a property in an area with an over supply, then wait, and if you can buy a property in an area reported as good value, then buy.
My mate and I shared a vino and, I feel, left with a new appreciation for the other parties industry.
Firstly, it was heartwarming to see a developer so concerned about protecting his previous purchasers and I hope he saw that agents work to get their clients the maximum price in any market but sometimes based on the market that maximum price is less than what they paid.
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