As predicted, some fantastic auctions on the weekend, the big news is that both properties were sold to buyers who hadn’t seen the properties before. These buyers turned up on the day and were the successful bidders. As I have said, this game is 10% luck. Coupled with the falling dollar, our country's strong building codes and reliable straight forward contracts, I guess the risk is minimal and if you see a great opportunity then why not jump in and buy it? Good luck to those buyers.
As a professional, I always recommend the proper due diligence before the purchase of anything however, having spoken to those buyers and other buyers on the day they have concluded that their greater risk was not whether there might be some termite activity in the property, it was whether the market was going to race away from them in two hot suburbs. It is a straight forward business real estate, but it keeps changing – how fascinating!
Now to the baby boomers. As this generation quickly migrates into retirement their accommodation needs are having an impact on the market place. They are moving from the large family home on the large block with 4-5 bedrooms and a pool to a more convenient abode. The baby boomers are looking for cash in the back pocket and convenience. A surprising factor I am seeing is they are moving from the classic Australian suburban home often into a modern inner city or close to the city unit or small dwelling. They are looking for something low maintenance and something that can be simply locked up as they head off for their next trip to Alaska or sailing down the Danube.
A large part of our market is still controlled by the baby boomers and I can see a continued big generational change, especially in the Mid and Upper North Shore which will put pressure on the Lower North Shore real estate.
I have received a number of calls this week in response to the under quoting by agents. Folks, there is no point calling me once the auction has passed, please call me before the auction not after the auction. If you have any doubts, give me a call and either myself or one of the team will guide you through this process with as much information as possible. A number of people requested we report those agents, unfortunately when that is done, the name of the person who reports the agent is often released creating a lot of bad blood. We have seen very little results from complaints to the Department of Fair Trading. Don’t get me wrong, they have acted swiftly and professionally in a lot of cases but still in many, more require action. I think if they send out a confidential survey to all of the agents they would be able to pinpoint who is doing it in every suburb in next to no time.