19th July 2019
When we talk about property and the value of investing, we understand that there can be market fluctuations but generally overall holding onto a property for a longer period of time will ride through any changes to price and always increase in value.
Property owners that have purchased a newer build would have never anticipated that the materials being used to create their dream home, would in fact have potential health risks, dangerous or worse be unsafe to live in at all. There have been so many stories that have come to light recently effecting many apartment blocks that have had an external cladding that is so unsafe due to fire risk that owners & tenants have been evacuated from residing in their property. As a result of this situation, the value of the property has dropped dramatically, owners have been left homeless with a mortgage they are still paying for and an ‘unsellable’ property.
The building industry has effectively been operating without government regulated guidelines for many years, it’s a tragic hard lesson to learn for everyone involved. The Victorian government has agreed to spend approx. $600 million to replace this cladding to 500 buildings, however with a shortfall of around $300 million, building permit cost will now be increased to raise the revenue. If you’re anticipating a new build, keep this in mind however more than anything it’s important to engage a quality builder using safe materials for your new home! See below link for your reference.
For the coast we are generally pretty safe with existing or new builds as we don’t have the level of apartment blocks as high density living for example Melbourne CBD. More reasons to purchase investment properties in regional / coastal areas!
Along with these changes there have also been positive changes to the Estate Agents ‘Sale of Land Act 1962’ in regards to a building ‘sunset clause’ which has very much given vendors / builders an advantage and left purchasers vulnerable in the transaction. We certainly support these changes. For more information see the below link to Consumer Affairs. Great that they are making them retrospectively – from August 2018.
We had a busy two weeks on the coast with school holidays and except for the end of last week when the weather turned wintery, we had many stunning sunny days which was perfect for kids getting outdoors. This has certainly been a totally enjoyable winter and as we head into the end of July, before we know it we will have August upon us and that only means one thing! Pre- Spring. Buyers should really be taking advantage of this ‘quieter’ time to purchaser property and be in for Summer.
Most of our higher end properties we are conducting inspections strictly by appointment to accommodate specific buyer schedules. As always we are available 7 days a week so feel free to get in touch to make a time that works for you.
If you’ve been driving passed Anglesea, you would have noticed that our ‘off the plan’ freestanding townhouses site has commenced preparation for construction. We will have more information on the opportunity to purchase in the coming weeks. One of the 4 already sold, 3 available – each with an asking price of $1,550,000, on a first in basis. Build timing approx. 12 months.
Looking forward to seeing you at the open for inspections or private appointments. Have a wonderful warm weekend.
Ph: 0488 980 994