Gold Coast Property Market Update 

June 2018

Opinion by Nicole Marsh, Buyers Agent and Business Owner - Eureka Property Buyers Agents

14th June 2018

I can’t believe we are halfway through the year already!!

Since our last newsletter,  the Commonwealth Games have been and gone and in my opinion, the coast has been in a bit of a ‘post-games’ hangover - until the past few weeks……

Us locals expected the worst with the games - our population was expected to double and travel times to blow out by hours just to get around BUT the weekend prior to the games saw the passenger numbers at the Gold Coast Airport hit a record high as more people left the Gold Coast, than arrived! The traffic was the best its been since I first moved here 22 years ago, and unfortunately the massive upswing in trade for many businesses, cafes and restaurants expected during the games, just didn’t happen. No denying the coast looked great on the TV though!

I have heard there is a bid being made for the 2032 Olympics to be held on the Gold Coast now…..

The Gold Coast property market is traditionally quite between the budget at the beginning of May and the end of financial year - but this year we’re noticing is a bit different…..

Properties that have sat on the market for some time have all now sold over the past few weeks like the tap has been turned back on come the 1st June and the market is relatively buoyant and back to normal -  there still seems to be lots of buyers around, and lots of new listings coming through.

 Who said the Gold Coast property market was quite!

Robina May 2018

We’re recently managed a renovation for an interstate client and dealing with the tradesmen and contractors, they are all so busy, many of them with months worth of work lined up. Even our go-to contact for new flooring commented that they did more business in the first two weeks of May than they did in the previous three months combined!

So, what does that mean? There’s still lots of money around and despite the lending restrictions on the banks (which are slowly softening) - people are still buying, selling and upgrading and while the market has slowed somewhat since last year, it shows no signs of stopping with many agents commenting that the majority of their buyers are cashed up and coming from interstate. Our Gold Coast Property Market traditionally runs two years behind the Sydney and Melbourne markets so we expect ours has a way to go yet….

With the underlying fundamentals of the Gold Coast economy changing over the past few years, we are not so reliant now on the tourism dollar to keep us afloat - it is the health industry that is now the biggest employer on the Gold Coast, which brings a whole different demographic with it. We hadnt relocated any doctors to the Gold Coast prior to the last two years. In the last two years we’ve purchased for 8. Read more about this demographic shift here.

I believe there is still lots of good buys to be found on the Gold Coast, you just have to know where to look!

As we head to the End of Financial Year, NOW is the time to chat to your accountant - time to do some pro-active tax (minimisation!) planning and get ready for the New Financial Year.

Until next month

Nicole

March 2018

Opinion by Nicole Marsh, Buyers Agent and Business Owner - Eureka Property Buyers Agents

17th March 2018

24 Days to go!!!  The Commonwealth Games is a hot topic on everyones lips at the moment  … The games AND the booming Gold Coast Real Estate market and what will the future bring post Games??

Wishing we had a crystal ball BUT in reality, none of us really know. ...

 HIstorically, when we compare our market with Sydney and Melbourne before and after the Commonwealth and Olympic Games of the past, on all accounts it looks as though the market may plateau for a few months, and then take off again. 

 Our market has been out-performing our Southern ‘big brothers’ and the vibe is very positive to date.  We’re still seeing a number of interstate buyers from Sydney and Melbourne either relocating up here, or looking to invest for the long term.

With the influx of visitors, many of whom may have never heard of the Gold Coast until now … there is a strong likelihood that we will see much more interest in our wonderful city beyond the Games from those enticed by our unique and fabulous lifestyle and all that is on offer for holiday-makers of all kinds!

When Speaking to selling agents and attending the open homes over the past few weeks, feedback from alot of buyers currently is that they are holding off and waiting until after the games to purchase when the market drops - I honestly don't think this is going to happen and I firmly believe these buyers are going to be caught out.

There is no perfect time to buy property because none of us have a crystal ball and know what the future holds. In my opinion though, the perfect time to buy is when YOU are ready. When you have your finances organised, you’ve undertaken the research on your suburb of choice, and have done your  due diligence on sale prices of properties in the area. Only then can you be confident to move forward.

For us, business will be very difficult to conduct while the Games are actually on - so were taking  a break for a few weeks from inspections. We’ll still be available by phone and email so please don't hesitate to contact us in the meantime but when you hear stories that a trip that usually takes 30 mins will take 4 hours +, Ive got much better things to do with my time than sit in traffic….a boat is sounding like a good option at moment!

 It’s a crazy time around town currently as the Opening Ceremony looms closer, and no doubt there will be some trying times for us locals in the next few weeks - BUT it will be so worth it for Gold Coast business in the long run!  The Gold Coast is looking fantastic at the moment so with our Gold Coast population about to double with the influx of visitors, they really are seeing it at is best - I just hope the rain stays away for a few weeks!

Until next month,

 Nicole

February 2018

Opinion by Nicole Marsh, Buyers Agent and Business Owner - Eureka Property Buyers Agents

17th February 2018

So we’ve kissed 2017 goodbye and I can’t believe its February already!

What started off as a quite start to 2018, has turned into some insane FOMO buying (Fear of Missing Out) just in the last two to three weeks or so.

With less than 50 days to the Commonwealth Games, there's lots of talk about the effect the games will have on the Coast, property prices and the traffic…...most Gold Coasters I speak to are leaving town as it conveniently coincides with easter and the school holidays. Read more about the effects it will have on property prices and the Gold Coast as a whole. 

We’ve had the the second stage of the light rail open just prior to Christmas and there has been a 27 percent spike in patronage across the entire system since - which represents an extra 245,259 trips on the trams.

The 7.3km, 11-minute journey along stage 2 connects the light and heavy rails together at Helensvale and allows people to travel from Brisbane to the beach by rail for the first time in more than 50 years. It is expected to be one of the major ways visitors from Brisbane will make their way to the city during the Games.

This spike is also now incentive for the Government to secure funding and push on with the third stage sooner than expected, seeing the light rail through to Burleigh with eventual plans to take it all the way to the Gold Coast airport.

>The Gold Coast property market is still being pushed alot by the Sydney and Melbourne buyers - pulling their money out of their market, or refinancing and pulling out equity and moving it into our market where they still see good value for money.

There is some crazy prices being achieved, particularly at auction, and most other properties selling with multiple offers if its good quality and priced right, so never has it been more important to do your due diligence to know a properties ‘true value’, to be decisive and to have your finance pre-approval in place, so that you can confidently make offers and not second guess yourself. You just don't have the time in the current market.

As the competition is fierce amongst agents for listings, they are over stating the anticipated sale price to sellers to try and secure the listing so we’re seeing lots of properties hit the market, well over priced in the hope they’ll snag an uneducated buyer who hasn't done their research or know the areas OR it will sit for a few weeks/months with two or three price drops to secure a buyer - often selling below its market value as the property has now ‘gone stale’ in the market.

Never has it also been more important to monitor the market - notice which agents list their  properties cheaper and sells them the first day, who overstates the pricing and they sit for a few weeks, and who uses the crappy photos taken on their phone for their listings, and that may be a bargain that's been overlooked by other buyers (yes this does happen, ALOT!).

If you’ve decided to buy a new property this year, I suggest just watching the market consistently for a month or so, attending auctions and open homes, to get a good feel for what properties are selling for, how much interest there is at open homes in your price bracket, just to educate yourself and get some good comparisons for when your ‘perfect’ property comes up - only then do you know its ‘true’ value.

We’re receiving lots of enquiries from buyers interstate that are trying to relocate or invest in the Gold Coast and just can't get into the market - the common complaint amongst them all is that the properties are under contract before they even get a chance to act on them…...so their frustration and disappointment keeps growing …….taking some buyers 12 - 18 months before they snag the right property, if at all - which is why they call us.

We attended three auctions last  weekend - and all three properties sold at auction.

Probably the most surprising was this one - (not to one of our buyers)  - see https://www.realestate.com.au/property-house-qld-coombabah-127125246 - which typically looks way better in the professional photos than it actually is - that sold for $485,000 with some very spirited bidding.

There was some pretty happy neighbours there exclaiming ‘We’re rich, we’re rich’ at the end of the auction!

It seems some people get carried away at auction - when with a simple scan online, you could pick up a comparable property, same location, but fully renovated with no work to be done, at the very low $500k mark. …….It just doesn't make logical sense - but for alot of first home buyers, this is their reality, as once they top the $500,000 mark they become liable for transfer duty.

In Queensland, last weekend our clearance rate at auction is 49.22% (meaning 49.22% of properties sold at or prior to auction)   -  Reading an article recently it said that 1 in 5 buyers are frightended of auctions (see https://www.smartpropertyinvestment.com.au/research/17453-auctions-a-fear-for-nearly-one-in-five-buyers) however I expect its more like 3 in 5 esp with the emmense pressure agents can put buyers under to ‘just make another $25k bid and you can blow your competition away’ - is the common term used…… One buyer we recently represented at auction told us that if we werent there with him, he would have easily caved in to the pressure and paid another $60,000 for the property than what we ended up securing it for…... and that's the beauty of having a professional on your side who understands the process, and can put some distance between yourself and the agent.

So, if you’ve decided 2018 is finally THE YEAR to get into the Gold Coast property market, then call us - we can help you through it all. If you need just a bit of help, then our hourly rate service may be just what you need (it may be cheaper than you expect……). If you need some assistance with auctions, then our ‘Auction Only’ package may be just right for you OR If you just want someone to work with you through the whole process from start to finnish and you pick up the keys, then our Gold Level Service is perfect for you. Find out more about our services or call us on 1300 520062

The Hunt Continues!

Nicole

December 2017

Opinion by Nicole Marsh, Buyers Agent and Business Owner - Eureka Property Buyers Agents

20th December 2017

Just wanted to take this chance to wish you all a Merry Christmas and a safe and happy 2018. To our past clients, thankyou again for your support over the years - it really is appreciated. Im working through our list of past clients to send you an update on what your properties are now worth in the current Gold Coast market, but if you'd like to know sooner, feel free to call - we'd love to hear from you. 

I find that the end of the year is the time we can finally take a breather and reflect on the year that was - AND what an ‘interesting’ year it has been in real estate industry.

Firstly, the poor investors have copped a bit of a battering in 2017. With restrictions imposed by ASIC resulting in changes to the lending policies by the banks, and lots of investors now having to pay Principle and Interest, rather than Interest Only, combined with the changes to depreciation allowances, the government is definitely doing their best to slow the investor market down.

We’re noting the number of sales failing due to finance has increased, with approximately 30% of properties selling and ‘contracts crashing' due to finance then hitting the market again for a second or third time until the contract finally sticks. The move by the government to slow the investment market down doesn't make any sense to me - The less incentives for investors = The less investors in the market = the less properties for rent = Higher Rents  - so will have a counterproductive outcome to housing affordability I believe. Time will tell.

At least we’ve finally seen the introduction of the First Home Super Saver Account which is a positive move to combat the ‘housing affordability’ issue.

In 2017 we’ve seen the likes of Purple Bricks really make their mark and grab a foothold in the real estate industry with their low fee sales commission model - and there is a lot of peeved off real estate agents out there. Like them or loathe them, I think the likes of Purple Bricks and other cut price commission agents are here to stay.

With listings so hard to secure and competition fierce, agents are really working hard to secure listings and get deals across the line - to the point of ‘Buying Listings’ where they will over quote what the sellers property will sell for just in order to secure the listing and then let the market condition the seller as to price. Never before has it been more important to have a professional buyers agent on your side where you as a buyer can find yourself under intense pressure from the agents to put pen to paper. We’ve recently had a couple of calls from buyers who’ve nearly come to ‘fisty cuffs’ with agents. They thought they better get a professional on their side before they find themselves up on assault charges - I kid you not.

We’ve had a great year on the Gold Coast we’ve got the warm up for the Commonwealth Games in April 2018, the construction of Westfield at Coomera well underway and the opening of the second stage of the Light Rail, now connecting both the light and heavy rails at Helensvale. Planning of stage 3 to Burleigh is now underway too with the eventual connection through to the Gold Coast Airport. Find out more

There has been a massive influx of interstate owner occupier buyers over the past 12 months - capitalising on the high of the Sydney and Melbourne property markets while our Gold Coast property market is still in an upward trend and presenting great value. In the premium suburbs on the Gold Coast, it seems agents can put nearly any price on a property and it will sell - usually to those uneducated southern buyers with FOMO (fear of missing out) who haven’t done their due diligence and so our market continues to climb.

With a shift in the underlying economic fundamentals and demographics on the Gold Coast since the GFC, people are finally starting to realise that there is alot more to the Gold Coast than just the bright lights of Surfers Paradise, and can appreciate it for the emerging city it actually is, not to mention our great weather!

2018 is shaping up to be another ‘interesting year’ with the commencement of the Royal Commission into the banking industry. Industry news headlines like ‘Major bank refunds millions to interest-only customers’ and ‘CBA fine could exceed $500m, says analyst,’ as CBA admits to breaches of counter-terrorism and anti-money laundering laws’ - you do wonder if the buggers would actually come clean if there was no looming Royal Commission…...I very much doubt it!  Either way with the massive profits made by the Big 4 from just over 24 million people, it's about time they were held accountable so Im sure there will be many more of these types of headlines to come…….

Over the past few weeks, we’ve fielded many calls from interstate buyers planning a move in the new year, so no doubt we’ll hit the ground running again come early January as always, our busiest time of the year.  

On a personal note, Im headed off on a self imposed ‘digital detox’ with no phones or internet for two weeks (a.k.a  a cruise in the South Pacific) from Christmas Eve, to make sure I actually have a break ready for 2018…. Those of you who know me well and my past clients will appreciate why hahah  - but Jemma in our office will be manning the phones in my absence so if you need anything she will be able to assist.

On another personal note, this is part of an email I received today from one our lovely interstate clients we worked with in 2017  - “Just wanted to say thank you again for helping us achieve our goal of securing an investment property in 2017.... Jamie and Nat” - and that right there in short is exactly why I do what I do. These poor buyers had been through the ringer with two frustrating unsuccessful attempts at trying to purchase their first investment property themselves. It was actually their mortgage broker that suggested they give us a call having worked with one of their other clients three times previously.

So if its your goal in 2018 to purchase your first home, upgrade your existing family home, or buy an investment property on the Gold Coast, and you think you may need some assistance, then call us, we can help. No pressure, I promise.

We find. We negotiate. You save.

Heres looking forward to an ‘interesting’ 2018!

Nicole and the team at Eureka Buyers Agents.

November 2017

Opinion by Nicole Marsh, Buyers Agent and Business Owner - Eureka Property Buyers Agents

25th November 2017

This year is different!

In years past, November is usually a really active time in the Gold Coast property market - but this year it's different.

The first few weeks in November are the last chance owner-occupiers have to purchase a new home, and be in before Christmas - just in time to unpack and get Christmas dinner on the table. Keen to start the new year in a new house, sellers can usually put just about any price on their property and it will sell almost instantly - BUT this year we’ve noticed that whilst still active, there’s not the usual ‘insanity’ we generally see at this time of year. Properties that are priced right are still sitting on the market a week to two weeks prior to that 'Under Contract' sign going up. 

Speaking to other agents, even as far afield as Toowoomba, they are noticing the same thing, so good to know that it's not just our Gold Coast Property Market.

We're also noticing that prices have eased in a number of suburbs accross the Gold Coast.

Not uncommon to see sellers that aren't prepared to meet the market straight up, sit on the market for months, while 'the market' conditions them on the true value of their home.

In saying that, often some good bargains can be found at this time of year and into January as sellers can find themselves in a ‘Must Sell’ situation with an impending job transfer or new school commencement.

Our Gold Coast property market still presents great value to our interstate and overseas constituents and this month we’ve noticed a spike in the number of inquiries from buyers looking for good quality investment properties at or below the $600,000 mark - which we haven't seen for some months - which is a reflection of the easing of some of the banks on their investor lending policies and ASICS 'please explain' of the banks as to why investors were being slugged with an inflated interest rates. 

With the Stage 2 of the light rail set to take its first passengers in January 2018, Commonwealth Games and a looming QLD state election, its going to be an interesting 2018!

Gold Coast Property Market Update - September 2017

Opinion by Nicole Marsh, Buyers Agent and Business Owner - Eureka Property Buyers Agents

15th September 2017

We’ve noticed this month that the market has ‘come off the boil’ a little. Speaking to other professionals in the property industry such as selling agent, pest and building inspectors and mortgage brokers, it's across the board and not unique to us. It seems that the government's intentions to slow the Sydney and Melbourne markets and tackling the supposed issue of ‘housing affordability’ through changes in requirements for investor lending is having a widespread reach

In saying that, this month we’ve noted a big increase in the number of inquiries from First Home Buyers now ready to enter the property market, particularly at the $300,000 to $350,000 mark so it's not all bad news. This of course then places upwards pressure on pricing in higher price brackets as many owner occupiers at lower price points upgrade to larger, more expensive homes…...and so the cycle begins again.

We’re noticing a large number of longer term investors now leaving the market too as many are coming off fixed interest rates, and with many not fitting the new lending criteria are choosing to sell, rather than refinance. For cashed up investors, there is still good buying to be found.  

A question we are often asked by owner occupiers and investors alike is ‘When is the right time to buy?....’

Being entrenched in the property industry for over 10 years now, I’ve watched and worked through the seasonal cycles first hand many times on the Gold Coast.

Unless you watch the market and analyse it on a daily basis, you wouldn’t realise things like the time of year, school holidays and public holidays have an effect on the property market BUT it does, and more so than you realise.

Let me run you through a typical year…

January (our busiest time with a massive influx of new enquiries ) - People take time to take stock of the last year and have reassessed their goals for the New Year.  Maybe a plan to upgrade and upsize  their existing family home, a job transfer which means they need to buy a new family home in an unfamiliar market, or investors deciding THIS is the year to finally start investing in property.

Lots of sellers at this time of year too, especially units in the beachside suburbs trying to cash in on the uneducated interstate tourists who decide they’d love a little chunk of the Gold Coast for themselves (yes this does happen! Often!) And not uncommon in Surfers Paradise or Broadbeach, these properties often come back up for sale a year or two later at the same time of year.   New owners realise the reality of holiday rental return figures not being as great as they thought and sky high body corp fees taking their toll.

February things really start to heat up The hangover of Christmas and New Year is long forgotten (at least until the credit card bill arrives…..eeek!) and it’s pretty much life as normal.

Everyone is back from holidays, kids are back to school, the building industry is back to business. There is an influx of new properties hitting the market, usually seen from the last week in January and well into February - in line with the kids going back to school. Don’t know why? Those of you with children would appreciate what a fruitless battle it would be to try and keep the house clean and tidy for open homes and inspections with kids at home rampaging! These sellers have also taken the time over Christmas, New Year and Australia Day to prepare their properties for sale and get their presentation 100% to maximise their sale price.

March/April - The market is running at full steam by now - with a bit of a hiatus in the middle for Easter! We’re noticing this year, that the number of ‘off market’ sales coming across our desks have increased substantially. Agents simply do not have time to get the listings online and market them correctly, so see us as a quick and easy sale if it’s a quality property at the right price.

May to July- Traditionally winter is renowned to be a quieter time in the property market. The buyers around at this time of year are very serious about buying and the sellers are serious about selling - usually for tax reasons and they usually do it in a hurry as they need everything wrapped up and sorted by end of financial year. Based on my past experience, the market almost comes to a standstill between the Federal Budget (usually the beginning of May) through until the end of financial year at 30 June. (And just saying, if you can’t find me during this time of year, I’ll be working on my tan for a few weeks in Singapore and Thailand!).

For us, the phone stops ringing from buyers and agents alike and it’s an ideal time to take a breather, catch up on everything in house, get our filing in order and get ready for Spring!

July/August  - Come the first of July, the old financial year is behind us and the phone starts ringing again! Buyers are ready to go again, and it’s our 2nd busiest time of year with buyer enquiry. Buyers ring us as they’ve had their tax done by their accountant and they’ve got a tax problem they need to fix for the new tax year - and decided they need some professional help as they don’t know where to start.

Lots of beachside holiday rental high rise units up for sale at this time of year when there is almost zero rental return.

September/October - There’s a commonly held belief in the real estate industry that spring is the best time of the year for selling a home so there are lots of new listings coming through. The flowers are blooming, the grass is green and all the buyers and sellers are keen to make a move into their new houses and be settled in and unpacked by Christmas.

November - A seller can put almost any price on their property in November and it will sell! There is always frantic buying in November - buyers have realised they need to BUY NOW to be in their new house by Christmas - so it’s just carnage in the market at this time of year. Buyers overpay, just to be in the market and sellers reap the rewards. At this time of year, you really need to watch the market like a hawk to ensure you either don’t pay too much for a property or don’t miss out altogether, as in my opinion owner occupier buyer activity is at one of its highest for the year and often properties sell within 24 hours of being listed.

December - Sellers in the market at this time of year are usually really keen to sell. Possibly the contract on their property from November fell over due to finance or there is an imminent job transfer and they are in the ‘must sell’ situation. If you’re a buyer, it’s often possible at this time of year to pick up a bit of a bargain if you’re pre-approved for finance and ready to go - but don’t get frustrated by the lack of choice on the market after the November action. Just take a break and revisit it all towards the end of January. Most solicitors and some banks take a break of 2 to 3 weeks over this time so the real estate industry is forced into a slow down. (Make sure you research this before you enter into a contract as you may need to use extended time frames for your contract conditions to be met).

Phew, what a year! After a quick breather we’re ready to do it all again……!

So in short, while every location and suburb goes through its cycles, so too does the Gold Coast Property Market as a whole throughout the year - and this can be key to understanding exactly what’s happening when you are trying to enter the market. Following on from all of this though, I believe the right time to enter the property market is when YOU are ready - there is always good buying to be found esp when you watch the market like a hawk - but if you don’t have your finance pre-approval in place and haven’t undertaken your research, you won't be in a position to recognise or capitalise on these opportunities when they arise.

If you would like to discuss the Gold Coast property market and its cycles further, please give me a call on 0418 665 807  
- I love this stuff!

Until next month, the hunt continues!.

Nicole

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Gold Coast Property Market Update - August 2017

Opinion by Nicole Marsh, Buyers Agent and Business Owner - Eureka Property Buyers Agents

23rd August 2017

The new financial year is in full swing, the weather is warming up, (with Queensland just experiencing its hottest July on record) and the question is, why would you want to live anywhere else??? 

This month I’ve noted a large influx of new properties hitting the market for sale (particularly lots of long term investors cashing out of the market).  I expect mostly due to the changes in the lending arena where many would be coming off fixed interest rates and finding it difficult to refinance.

No longer are we seeing the unconscionable 110% loans by the banks of a few years back, where investors were borrowing the full property purchase price, stamp duty, renovations, a holiday and then some…..which in my opinion is a positive! Any investor's refinancing or borrowing money now are likely to require at least 20% deposit, and likely repayments are to be made on a principal and interest basis.

In an effort by the government to slow down the property market and improve ‘housing affordability’ with these continuing, tighter, restrictions in lending, and changes to depreciation allowances for investors, I can see that, long term, this could have massive negative implications for tenants. As less investors in the market = less properties for rent = higher rents….
Hmmm I wonder if they’ve thought this through fully…........

In the current market, I still have my investor clients easily achieving 5% - 6% returns - although I have to admit good quality properties at the right price, and in the right locations, are proving harder and harder to find. So now, more than ever you need a good Buyers Agent, on the Gold Coast, on your side who will work hard to find the right property for you. Never before has my networks of agents and contacts proven so valuable to be able to get the insider information and snavel something ‘off market’ to get the competitive advantage over the other buyers out there.

This month I’ve also noted a larger number of first home buyers coming to us for assistance. One property I’ve just secured for a first home buyer, was a fully furnished one bedroom, one bathroom unit in a low rise complex with river views, walking distance to the beach and light rail for $220,000.

I ask you - Is there a real issue with housing affordability, or with first home buyers expectations?
 
Despite the ‘supposed’ cooling-off of the Sydney and Melbourne property markets, I'm still seeing lots of owner/occupiers capitalising on these markets - selling up down south, cashed up and making a bee-line for the Gold Coast. Here they are seeing good value for money in the Gold Coast Property Market, and can secure a great property for a fraction of their markets back home, and pocketing big wads of cash in the difference. In our opinion, these un-educated, emotional buyers are paying well over and above a property's true value with the FOMO (Fear of Missing Out) phenomenon kicking in. Great if you’re a seller in the current market where competition is fierce!......
 
But if you are a property buyer on the Gold Coast, and are sick of missing out or are finding that properties in real life are nothing like the photos on the net, then contact me, I can assist!
 

At Eureka Buyers Agents We find. We negotiate. You save.

Til next month,

Nicole

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Gold Coast Property Market Update - July 2017

Opinion by Nicole Marsh, Buyers Agent and Business Owner - Eureka Property Buyers Agents

20th July 2017

This month I've noticed a massive increase in the number of properties coming across my desk due to a divorce or relationship break-up. 

Who’s the first person the agents call when sellers want a no-fuss sale? You guessed it, Us….

Why?

 -We network well and have formed good quality working relationships with the agents and mortgage brokers over the years

- Our buyers have finance pre-approval in place and ready to go

The tally would be at 7 or 8 of these such sales that we are aware of just throughout June and July thus far, that haven't openly made it to the market - and that's just in the suburbs we’re currently actively searching in for clients.

These distressed sales obviously can result in great buying for our buyers - one such property we secured for a client over $15k less than a back up contract, just because we could act quickly and decisively.

Based on past experience, the agents know that by dealing with us, the sale has the highest chance of completion through to settlement and with the least amount of hassle so that works to our advantage.  When in a multiple offer situation, an agent will encourage a seller to take our offer, even if it is lower than another, because they know we can rationally work through any issues that may arise. 

Even if issues are found after an unfavourable building and pest inspection for example, we have the experience to work through them, often with a price renegotiation, or we have a network of the right tradies in place so work can be easily arranged, and at a good price.

A question I can’t answer though, is why so many off-market ‘divorce’ sales all at once? Is it just that sellers now have some good equity in their properties and can leave the relationship with some cash in their pockets to start over again?

Fortunes are made and lost everyday in real estate - and it’s no truer than in the Gold Coast Property Market today.

I'm finding it’s difficult to see good value in some suburbs on the Gold Coast at the moment, particularly in some of the more prestigious beachfront and beachside suburbs, but that’s from a locals perspective. For buyers from Sydney and Melbourne, who have a different ‘sphere of reference’ our market still presents great value (as a comparison to their overvalued markets at home) and they have no hesitation in paying at or above full asking price, just to get in the market. The FOMO (Fear of Missing Out) phenomenon is still very much at large in the market - so that also helps to drive prices upwards.

One of my secrets to buying well is to understand the motivations of the seller. Understanding the vendor’s reasons for selling and what’s really important to them, can often be your point of difference to get your offer accepted over the others.

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Gold Coast Property Market Update - April 2017

WOW! What an ENORMOUS start to 2017 (that’s why you’re getting Januarys newsletter in April - we just haven’t had 5 mins to put pen to paper over the last few months!).

After a relatively quiet period this year between Christmas and New Year - which traditionally has been one of our busiest times - I thought to myself “Great, I’ll just cruise into the New Year and wait for the market to get back to normal’  - well, I must have jinxed myself because my phone has not stopped ringing since the 2nd of January with new buyer enquiries, agents with new listings and a lot of off market opportunities coming through. The Gold Coast property market is well and truly cranking!

Being entrenched in the property industry for over 10 years now, I’ve watched and worked through the seasonal cycles first hand many times on the Gold Coast.

Unless you watch the market and analyse it on a daily basis, you wouldn’t realise things like the time of year, school holidays and public holidays have an effect on the property market BUT it does, and more so than you realise.

Let me run you through a typical year…..

January (our busiest time with a massive influx of new enquiries ) - People take a lot of time to take stock of the last year and have reassessed their goals for the New Year.  Maybe a plan to upgrade and upsize  their existing family home, a job transfer which means they need to buy a new family home in an unfamiliar market, or investors deciding THIS is the year to finally start investing in property.

Lots of sellers at this time of year too, especially units in the beachside suburbs trying to cash in on the uneducated interstate tourists who decide they’d love a little chunk of the Gold Coast for themselves (yes this does happen! Often!) And not uncommon in Surfers Paradise or Broadbeach, these properties often come back up for sale a year or two later at the same time of year.   New owners realise the reality of holiday rental return figures not being as great as they thought and sky high body corp fees taking their toll.

February things really start to heat up The hangover of Christmas and New Year is long forgotten (at least until the credit card bill arrives…..ekkk!) and it’s pretty much life as normal.

Everyone is back from holidays, kids are back to school, the building industry is back to business.

There is an influx of new properties hitting the market, usually seen from the last week in January and well into February - inline with the kids going back to school. Don’t know why? Those of you with children would appreciate what a fruitless battle it would be to try and keep the house clean and tidy for open homes and inspections with kids at home rampaging! These sellers have also taken the time over Christmas, New Year and Australia Day to prepare their properties for sale and get their presentation 100% to maximise their sale price.

March/April - The market is running at full steam by now - with a bit of a hiatus in the middle for Easter! We’re noticing this year, that the number of ‘off market’ sales coming across our desks have increased substantially. Agents simply do not have time to get the listings online and market them correctly, so see us as a quick and easy sale if it’s a quality property at the right price. Read more about this in our December newsletter

May to July- Traditionally winter is renowned to be a quieter time in the property market. The buyers around at this time of year are very serious about buying and the sellers are serious about selling - usually for tax reasons and they usually do it in a hurry as they need everything wrapped up and sorted by end of financial year.

Based on my past experience, the market almost comes to a standstill between the Federal Budget (usually the beginning of May) through until the end of financial year at 30 June. (And just saying,  if you can’t find me during this time of year, I’ll be working on my tan for a few weeks in Singapore and Thailand!).

For us, the phone stops ringing from buyers and agents alike and it’s an ideal time to take a breather, catch up on everything in house, get our filing in order and get ready for Spring!

July/August  - Come the first of July, the old financial year is behind us and the phone starts ringing again! Buyers are ready to go again, and it’s our 2nd busiest time of year with buyer enquiry. Buyers ring us as they’ve had their tax done by their accountant and they’ve got a tax problem they need to fix for the new tax year - and decided they need some professional help as they don’t know where to start.

Lots of beachside holiday rental high rise units up for sale at this time of year when there is almost zero rental return.

September/October - There’s a commonly held belief in the real estate industry that spring is the best time of the year for selling a home so there are lots of new listings coming through. The flowers are blooming, the grass is green and all the sellers are keen to make a move into their new houses and be settled in and unpacked by Christmas.

November - A seller can put almost any price on their property in November and it will sell! There is always frantic buying in November - buyers have realised they need to BUY NOW to be in their new house by Christmas - so it’s just carnage in the market at this time of year. Buyers overpay, just to be in the market and sellers reap the rewards. At this time of year, you really need to watch the market like a hawk to ensure you either don’t pay too much for a property or don’t miss out altogether, as in my opinion owner occupier buyer activity is at one of its highest for the year and often properties sell within 24 hours of being listed.

December - Sellers in the market at this time of year are usually really keen to sell. Possibly the contract on their property from November fell over due to finance or there is an imminent job transfer and they are in the ‘must sell’ situation. If you’re a buyer, it’s often possible at this time of year to pick up a bit of a bargain if you’re pre-approved for finance and ready to go - but don’t get frustrated by the lack of choice on the market after the November action. Just take a break and revisit it all towards the end of January.

Most solicitors and some banks take a break of 2 to 3 weeks over this time so the real estate industry is forced into a slow down. (Make sure you research this before you enter into a contract as you may need to use extended time frames for your contract conditions to be met).

Phew, what a year! After a quick breather we’re ready to do it all again……!

So in short, while every location and suburb goes through its cycles, so too does the Gold Coast Property Market as a whole throughout the year - and this can be key to understanding exactly what’s happening when you are trying to enter the market.

On a side note, this month Eureka Property Buyers Agents celebrates it’s 8th birthday and my 11th year as a Gold Coast Buyers Agent. What an experience!

To all my past and current clients I wanted to THANK YOU for your business - it really is greatly appreciated. I’ve loved every minute (almost.. LOL!) of working with you all and no denying there were some stressful times along the way when things didn’t go our way for one reason or another - but I just wanted to say ‘Thank you’.

I truly am grateful to the many of you now coming back for your 2nd and 3rd purchases after the massive upswings you’ve had on your values of late on the Gold Coast. Clearly, I got it right the first time and I’m really looking forward to what the Gold Coast Property Market has in store for us all in the coming years.

Until next month, the hunt continues!

Nicole