Its been an interesting week in property characterized by the following activity.
Increased level of inquiry from development site owners. This is mainly due to the spike in building interest due to the government grant. Lots with subdivision approval have been snapped up quickly. Titled lots attract a premium price as buyers aim to secure building grants. This has created opportunities for sellers who have approval to subdivide to achieve higher sale prices by completing subdivision. With buyers, attention on building grants building is looking more attractive than buying established. As a result established property is slower and is still a buyers market.
While the incentives are stimulating the market the reality for people with a house to sell entering the market now is likely to be to a net overall increase in the cost of the move when you factor in the following.
1/Possible lower price for the existing house
2/Increase price of land
3/Increased cost of building
This is with government incentives.
As a result, the government incentives to build have inadvertently created fantastic opportunities to buy established homes due to increased building and land cost.
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